EU: CJEU judgment that export procedure for construction materials violated EU law (Hungary)
Export notification and pre-emption procedure for construction materials breached EU law on free movement of goods
The Court of Justice of the European Union (CJEU) today issued a judgment (Case C-499/23) stating that Hungary's procedure for notifying exports of construction materials and reserving a right of pre-emption and purchase by the Hungarian state was contrary to EU law.
Read the CJEU release (November 13, 2025).
Background
In response to the global scarcity of raw materials during the COVID-19 pandemic, Hungary implemented measures requiring notification of exports of construction materials and allowing the state to intervene in export transactions. The European Commission (EC) initiated infringement proceedings, arguing that these measures constituted quantitative restrictions on exports, violated the principle of free movement of goods within the EU, and infringed the EU's exclusive competence in the common commercial policy.
CJEU judgment
The CJEU upheld the EC's claims, finding that Hungary's measures imposed administrative burdens, extended delivery times, and, in cases when the state exercised its pre-emption rights, completely prevented export transactions. These actions were deemed explicit restrictions on exports, prohibited under EU law. The CJEU also dismissed Hungary's justification based on public security, ruling that the scarcity of materials did not constitute a sufficiently serious threat to society.
Additionally, the CJEU determined that Hungary failed to comply with procedural requirements under EU law by adopting the measures before the expiration of a three-month standstill period and without notifying the EC of changes to the draft law.