Thousands in Budapest celebrated after the government froze plans to impose a tax on internet traffic.
The proposal, aimed at bringing down Hungary's budget deficit, would have made people pay a fee on each gigabyte of data they use.
People took to the streets in recent days to protest what they said would be unfair and a curb on free expression and access to information.
The protests this week have been the largest since Prime Minister Viktor Orban took office four years ago.
They've shown the frustrations some Hungarians feel over what they say is an autocratic rule.