The European Union’s Court of Justice ruled on Thursday that Hungary’s export controls on raw and construction materials violate EU law, siding fully with the European Commission.

The Commission had challenged Hungary’s rule requiring exporters to notify the state before shipments, giving the government the right of first refusal on materials. Brussels argued the policy breached the EU’s principle of free movement of goods and the bloc’s exclusive authority over trade policy, News.Az reports, citing Reuters.

Hungary defended the measure as necessary to secure supplies for critical infrastructure. However, the court rejected that claim, saying Budapest failed to prove a genuine and serious threat to material availability.

“The measures have the explicit object of restricting exports of construction materials… prohibited by the principle of the free movement of goods,” the court said.

 

News.Az