This decision was made following a complaint lodged by the European Commission (EC).
University reform is one of the many points of friction between Brussels and the government of sovereignist Viktor Orban, who is also in conflict over migration or control by the Hungarian state of justice, media and non-governmental organizations (NGOs).
Due to this reform, universities registered abroad can no longer operate in Hungary, if they provide education in their country of origin.
“This requirement is in line with the provisions of the Charter of Fundamental Rights of the European Union on academic freedom, the freedom to set up higher education institutions and the freedom of enterprise,” the CJEU wrote in its ruling.
It is also facing the commitments that Hungary has made to the World Trade Organization (WTO).
“The conditions introduced by Hungary to allow foreign higher education institutions to carry out their activities in its territory are incompatible with Union law,” the Court concluded.