Newsalert | Public Law, Regulatory and Authorities

On 13 July, with its judgment in Case C-106/22 | Xella Magyarország, the European Court of Justice ruled for the first time on the compatibility with EU law of the control mechanisms on foreign direct investment that are currently in place in most Member States, with specific reference to the Hungarian regulation.

The Court of Justice clarified that where EU companies are involved in the investment transaction, the issue must be addressed on the basis of Article 54 TFEU on the freedom of establishment and that Member States may not invoke purely economic purposes as one of the reasons of public order and security that exceptionally justify a limitation.

Chiomenti Professionals analysed in detail the ruling that strongly reaffirms the pillars of European construction and the fundamentals of the free market.