The law, which was passed in December after being pushed through by Viktor Orban’s ruling party, saw the creation of the Office for the Defense of Sovereignty, a body designed to investigate people and organizations suspected of compromising Hungary’s national sovereignty.

The law was adopted after what Budapest has described as being a series of “unlawful attacks against the sovereignty of Hungary by foreign organizations and individuals seeking to assert their own interests in Hungary.”

Among other things, it has sought to crack down on “any activity that is foreign-funded and that may influence the outcome of elections, the will of voters or supports such activities.”

However, the law has been met with heavy criticism for enabling the name-shaming of those that criticize both Orban and his party. Moreover, critics have been vocal about the law’s loose definitions and sweeping mandate.

Its detractors have also slammed the lack of remedial measures to appeal against the office’s findings.

Brussels v Budapest

In a statement released on Thursday, the Commission said: “The law entrusts the office with a very broad discretion concerning investigations, notably on access to information, empowering the office to intervene in an intrusive manner in investigations.”

The Commission added: “The law requires extensive publicity about the individual investigations and their findings. This will have negative consequences for the entities concerned, including a stigmatizing effect.”

It concluded: “The broad powers and discretion of the office will affect a wide range of persons and entities, including civil society organizations, media outlets and journalists in a disproportionate manner.”

In February, the Commission sent a formal notice to Hungary raising its concerns and later reiterated these grievances in May after finding the response “unsatisfactory”.

Budapest, however, fired back claiming that the Commission’s complaints were baseless.

The Commission, though, has maintained its position. Announcing it would refer Hungary to the European Court of Justice, the Commission said: “After carefully assessing the reply of the Hungarian authorities, the Commission maintains most of the grievances identified, which have still not been addressed.

“Those grievances concern several fundamental rights enshrined in the EU Charter of Fundamental Rights.”