CJEU Makes First Judgment Interpreting EU Blocking Regulation

In Short

The Situation: The Grand Chamber of the Court of Justice of the European Union ("CJEU")  has recently and for the first time given its opinion on interpretation and application of the EU Blocking Statute.

The Result: Partially deviating from the opinion of the Advocate General, the CJEU adopted a nuanced position, protecting the EU companies on the basis of the principle of proportionality (balancing the EU person's potential exposure to secondary sanctions against the risk of  disproportionate economic consequences).

Looking Ahead:  The decision of the CJEU appears to provide much greater flexibility for national courts to assess the impact on the EU Blocking Statute based on individual circumstances of the case.