Assistant lawyer Natālija Ķīse complied the material.

Dispute resolution & risk management

CJEU: gross negligence does not exempt banks from immediately refunding fraud victims under PSD2

Delivered: 15 October 2026

The Court of Justice of the European Union (CJEU) delivered its judgment in Tukowiecka (C-70/25), addressing bank refund obligations following online fraud under the EU Payment Services Directive (PSD2). A Polish bank customer fell victim to a phishing scam on a sales platform and entered her credentials on a fraudulent site.

The CJEU ruled that a payment service provider must immediately refund the customer for unauthorized transactions by the end of the next business day after being notified. Even if the customer acted with gross negligence, the bank cannot unilaterally refuse or delay the refund – it must first process the refund and can only seek to recover the funds from the customer afterwards through a separate procedure.

See also press release.

CJEU upholds sanctions for online videos violating national public morals rules

Delivered: 15 October 2026

CJEU delivered its judgment in Golf Bulgaria (C-591/24), concerning the compatibility of national “public morals” standards with EU law. A Bulgarian media regulator sanctioned a broadcaster for publishing degrading online videos.

The CJEU held that the Audiovisual Media Services Directive and Article 11 of the EU Charter of Fundamental Rights do not preclude member states from imposing administrative sanctions under general national public morals provisions. The Court confirmed that protecting human dignity and public morality constitutes a legitimate limit on media freedom, provided the national measures are prescribed by law and remain proportionate.

CJEU: compensation for working time violations requires proof of actual harm to private life

Delivered: 8 October 2026

CJEU ruled in the case of Zálečta (C-808/24) that a breach of the EU Working Time Directive (2003/88/EC), specifically regarding the misclassification of on-call time, does not grant employees an automatic right to financial compensation. To receive compensation for non-material damages, the employee must actively demonstrate and prove actual harm or a specific negative impact on their private and family life resulting from the employer’s violation.

ECtHR finds property rights breach over interest-free refund of wrongly levied customs duties

Delivered: 13 October 2026

In Devekom DOO Niš v. Serbia, the European Court of Human Rights (ECtHR) ruled that Serbia violated Article 1 of Protocol No. 1 (protection of property) of the European Convention on Human Rights (ECHR). After authorities wrongly assessed and collected customs duties on imported goods, the funds were returned to the company without interest. The Court held that withholding interest on unlawfully collected taxes unfairly infringed upon the company’s property rights.

Delivered: 20 October 2026

ECtHR delivered an advisory opinion under Protocol No. 16 to the ECHR regarding Article 6 of ECHR (Right to a fair trial) in lawyer disciplinary proceedings. The Court concluded that while domestic law may require a lawyer to appear in person, a disciplinary body cannot refuse on principle to hear appointed counsel when the lawyer fails to appear. Disciplinary bodies must allow counsel to explain the absence and verify whether it constitutes an unequivocal waiver of defence rights or an attempt to evade justice. In the absence of such a waiver or evasion, the tribunal must ensure a genuine opportunity to defend, either by granting an adjournment or allowing representation in absentia.

Given the severe impact of professional sanctions on a lawyer’s career and livelihood, refusing to hear instructed counsel, combined with a lack of remedies, creates a disproportionate restriction on the right to a fair trial.

See also press release.

Tax

CJEU: tax authorities cannot delay good faith evaluation in VAT audits

Delivered: 14 October 2026

CJEU ruled in X-GmbH v Finanzamt Y (T-569/25) that national tax authorities cannot restrict the assessment of a reseller’s good faith in applying the VAT margin scheme by relegating it to a separate tax-equity procedure. The Court held that forcing a taxpayer to establish good faith in a separate proceeding makes the exercise of EU rights excessively difficult and breaches the principle of effectiveness. Consequently, tax authorities must evaluate a reseller’s good faith directly within the primary tax assessment procedure.

CJEU clarifies tax domicile rules for EU staff

Delivered: 15 October 2026

The CJEU delivered its judgment in Kolwager (C-275/25), clarifying how the EU Protocol on Privileges and Immunities (PPI) protects EU staff from conflicting national tax claims. In this case, German tax authorities attempted to levy gift tax on an Austrian European Investment Bank employee residing in Luxembourg on the grounds that he maintained a secondary family residence in Germany. The CJEU rejected Germany’s position, ruling that the PPI strictly limits tax residence to the official’s home or employment state, thereby precluding third member states from attributing additional tax domiciles.

CJEU clarifies anti-abuse rules for dividend tax exemptions

Delivered: 15 October 2026

CJEU ruled in case Neo Group (C-203/25) on the anti-abuse provision of the EU Parent-Subsidiary Directive, clarifying when national tax authorities can deny a withholding tax exemption on cross-border dividend payments. The Court held that genuine economic activity at the receiving parent company does not, by itself, rule out abuse: tax authorities must assess the whole chain of transactions, including steps taking place outside the subsidiary’s own member state, and may deny the exemption even where the parent company carries out real business activities.

The Court also confirmed that authorities do not need to show that the subsidiary paying the dividend itself knew about the abusive scheme – it is enough that at least one participant in the transaction chain, or the ultimate beneficial owner, knew or could have known of it.

Competition & regulatory

Advocate General recommends keeping TikTok under strict EU gatekeeper rules

Delivered: 15 October 2026

Advocate General Andrea Biondi recommended the CJEU to reject parts of ByteDance’s appeal, reviewed in light of its “gatekeeper” status under the Digital Markets Act (DMA) – the first DMA case to reach the EU’s top court. ByteDance had met the thresholds (such as its global value and number of EU users) that trigger a presumption that it counts as a gatekeeper, but it argued it should still be excluded, pointing to arguments like the lack of a broader platform ecosystem around TikTok, the fact that many users also actively use competing social media apps alongside TikTok, and TikTok’s smaller scale compared to other major platforms.

Advocate General argued that people also using rival platforms does not, by itself, prove TikTok isn’t an important gateway between businesses and users, and that to overturn the presumption, a company must bring genuinely convincing evidence, not just raise doubts in the proceedings.

Defence

EU establishes AGILE programme to support defence SMEs and start-ups

Adopted: 12 October 2026

The Council approved the AGILE regulation – a EUR 115 million initiative aimed at accelerating defence innovation. The programme funds small and medium-sized enterprises, startups, and scale-ups building emerging defence technologies.

See also press release.

EU updates list of defence-related products under intra-EU transfer rules

Published: 19 October 2026

Commission Delegated Directive (EU) 2026/2325 updates the official list of defence-related products subject to simplified intra-EU transfer rules. The directive replaces the annex to Directive 2009/43/EC to align it with the updated Common Military List approved by the Council in February 2026. This update ensures the transfer of military equipment and technology between EU member states through general transfer licences, while maintaining national security oversight and export controls.

Transport & Logistics

EU technical standards for mobile driving licences

Published: 14 October 2026

Commission Regulation (EU) 2026/2266 lays down technical and security rules for mobile driving licences under Directive (EU) 2025/2205. It regulates their issuance, verification, and cross-border exchange among member states and third countries. To ensure seamless interoperability with European Digital Identity Wallets and checking authorities, digital licences must meet common specifications and be issued as qualified electronic attestations, with member states required to implement these rules by late 2029.

Trade & Consumer Goods

Expansion of EU import authorisations for non-EU animal products

Published: 15 October 2026

Commission Implementing Regulation (EU) 2026/2228 updates the list of third countries authorised to export specified animals and food products of animal origin for human consumption into the EU following the approval of their national health control plans.

Migration & Relocation

EU establishes a common return system for third-country nationals staying illegally under a new regulation

Entry into force: 16 October 2026

Regulation (EU) 2026/2280 establishes a common EU system for the return of third-country nationals staying illegally in the Union, repealing the existing framework (i.e., Directive 2008/115/EC, Council Directive 2001/40/EC, and Council Decision 2004/191/EC) and updating it under a regulation that introduces harmonized return procedures across all member states.