The Court’s first decision on FDI screening limits the scope of the EU FDI Screening Regulation and underlines that national regulators must meet a high legal standard to block foreign investments.

On July 13, 2023, the Court of Justice of the European Union (Court) held that the decision by the Hungarian government to block the planned acquisition of a Hungarian sand and gravel quarry under its national foreign investment screening laws was incompatible with EU Treaty rules and in particular in violation of the freedom of establishment.