The European Commission has initiated infringement proceedings against Malta over its legal protections for Malta-registered companies against court judgments issued in other EU member states.

On Wednesday, the Commission formally notified Malta of the proceedings.

The case revolves around a 2023 amendment to Malta's Gaming Act, which introduced a form of legal "immunity" shielding Maltese gaming companies from legal actions that could "conflict with or undermine the legality of" Malta's gaming framework or related obligations.

Later that year, in a landmark ruling, Judge Toni Abela declined to enforce a garnishee order against the Maltese gaming firm TSG Interactive Gaming Europe Limited, citing the supremacy of Malta's Constitution over EU law.

In reply, the government said it has taken note of the Letter of Formal Notice issued by the European Commission earlier today, in relation to Article 56A of the Gaming Act (Chapter 583 of the Laws of Malta).

The government reiterated that Article 56A of the Gaming Act does not establish new or separate grounds for refusing recognition or enforcement of judgments beyond those set out in Regulation (EU) 1215/2012 (Brussels I Recast). Rather, it codifies into law Malta's long-standing public policy on online gaming matters.

Malta remains fully committed to maintaining a constructive dialogue with the European Commission, the governmeny said, adding itwill provide a formal response to the Letter of Formal Notice within the stipulated two-month timeframe.