Due to "the discriminatory behavior of its supporters" at Euro 2020, when its fans were accused of homophobia and racism, UEFA has imposed Hungary a two-match spectator ban.
The Hungarian Football Federation has also been fined €100,000 (£85,000/$118,000) and required to show UEFA's #EqualGame flag at UEFA competition matches in which it is the host.
Following an investigation into suspected homophobic flags and monkey noises during Hungary's Euro 2020 group stage matches in Budapest and Munich, the sentence was handed down.
Hungary hosted Portugal and France at the Puskás Aréna before traveling to Munich to face Germany at the Allianz Arena.
UEFA assigned an ethics and disciplinary inspector on June 20 to investigate "possible discriminatory occurrences" during the two home matches, and the inquiry was expanded during the away encounter against Germany.
During the play against Portugal, home supporters held a sign that read "ANTI LMBTQ," the Hungarian abbreviation for homosexual, gay, bisexual, transgender, and queer people.
During these matches, monkey noises were also heard, which is a racist slur directed towards black players.
The Control Ethics and Disciplinary Body of UEFA determined on Friday (July 9) that Hungary should face a three-match spectator ban, but this was reduced to two, with a third one suspended for a two-year probationary period.
Hungary won't play another UEFA-sanctioned match until June 2022, when the UEFA Nations League 2022-2023 kicks off.
This prohibition does not apply to FIFA-sanctioned events, such as the upcoming World Cup qualifiers.
Last month, the Hungarian Parliament passed a rule prohibiting LGBTQ content in schools and on television for children under the age of 18, prompting the European Union to demand that the verdict be overturned.