30 September 2026 22:00 UTC · European Commission · EU Commission Press Release · Source · Email X Link

European Commission Refers Hungary to Court of Justice

Key points

The European Commission refers Hungary to the Court of Justice of the European Union over intra-EU investor-State arbitration rules.
The Commission finds Hungary in breach of EU law for allowing State-controlled companies to circumvent arbitration obligations.

TL;DR

The European Commission states that Hungary failed to prevent violations of the prohibition on intra-EU investor-State arbitration.
The Commission indicates that the Hungarian State effectively controls MOL and its subsidiaries, making their actions imputable to the State.
The European Commission notes that MOL brought an arbitration case against another Member State and sought enforcement of the award.
The Commission sent a letter of formal notice in December 2025 and a reasoned opinion in April 2026 before the referral.

Original text

European Commission - Press release Commission decides to refer Hungary to the Court of Justice to ensure compliance with rules on intra-EU investor-State arbitration Brussels, 1 October 2026 Today, the European Commission decides to refer Hungary ( INFR(2025)2204 ) to the Court of Justice European Union for failing to prevent violations of the prohibition on intra-EU investor-State arbitration, as established by the case-law of the Court of Justice of the European Union. In its judgment in Case C-741/19 , (“the Komstroy judgment”), the Court of Justice held that Articles 267 and 344 TFEU prevent an international agreement, such as Article 26 of the Energy Charter Treaty , from allowing an investor from one Member State to bring a dispute concerning investments in another Member State before an arbitral tribunal whose jurisdiction that Member State has agreed to accept. According to settled case-law of the Court of Justice of the European Union, its judgments apply retroactively and the liability of a Member State under Article 258 TFEU can be extended to: (I) acts of private law entities under its supervision or effective control or function ;(II) the bodies to which it assigns a task in the public interest or specific privileges; and (III) any entity whose action reflects or implements the policy of the State. The Commission considers that the Hungarian State effectively controls MÓL and, consequently, its subsidiaries, even if the companies concerned are private entities. MÓL and its subsidiaries behaviour is therefore imputable to the Hungarian State. Hungary has, in fact, allowed State-controlled companies to circumvent obligations under EU law, including on investor-to-Member State arbitration. MOL breached the prohibition of intra-EU investor State arbitration. Firstly, MOL brought an investor- State arbitration case on the basis of Article 26 of the Energy Charter Treaty against another Member State; secondly, once having obtained an award against the other Member State in violation of EU law, it has in addition requested a third-country court to recognise and enforce that intra-EU investor- State arbitral award issued in its favour. EU law obliges MOL not to enforce the award, because of its contrariety to EU law. The Commission sent a letter of formal notice to Hungary in December 2025 , and the Reasoned opinion in April 2026 . As the Commission considers that Hungary is still in breach of EU rules, it has decided to refer the cases to the Court of Justice of the European Union. For more information EU infringement procedure Infringement decisions database and infringements map and graphs October 2026 infringement package IP/26/1870 <@rel_link@> Press contacts: Anna-Kaisa ITKONEN (+32 2 295 75 01) Cristiana MARCHITELLI (+32 2 298 94 07) General public inquiries: Europe Direct by phone 00 800 67 89 10 11 or by email

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