AN CHÚIRT UACHTARACH
THE SUPREME COURT
Supreme Court Appeal Number: S:AP:IE:2025:000148
[2026] IESC 27
O’Donnell C.J.
O’Malley J.
Hogan J.
Murray J.
Collins J.
IN THE MATTER OF SECTION 142 AND SECTION 150 OF THE DATA
PROTECTION ACT 2018
BETWEEN/
TIKTOK TECHNOLOGY LIMITED and TIKTOK INFORMATION
TECHNOLOGIES UK LIMITED
RESPONDENTS
– AND –
DATA PROTECTION COMMISSION
APPELLANT
JUDGMENT of Mr. Justice Brian Murray delivered this 30th day of April 2026
This appeal
1. This appeal arises from a decision of the appellant (“the DPC”) of 30 April 2025. There,
the DPC determined that the first-named respondent (“TikTok”) had infringed Articles
46 and 13(1)(f) of Regulation (EU) 2016/679 (“the GDPR”). The findings arose from
the transfer by TikTok of certain personal data of users of its services, to jurisdictions
outside the European Economic Area (“the EEA”). As a result, the DPC directed
TikTok to (a) suspend those transfers of data, (b) bring the processing of the data into
compliance with the GDPR, and (c) pay two administrative fines of €485M and €45M.
TikTok responded by initiating these proceedings, a statutory appeal against the
decision as enabled by ss. 142 and 150 of the Data Protection Act 2018 (“the 2018
Act”).
2. The matter now comes before this court by way of the DPC’s appeal against a decision
of the High Court (Mulcahy J.) granting a stay on the first two parts of this direction
pending the hearing of the full statutory appeal ([2025] IEHC 619). The parties agree
that the effect of the relevant provisions of the 2018 Act is that the obligation to pay the
administrative fines – the third part of the direction – was automatically stayed upon
the commencement of these proceedings.
3. Stays on administrative decisions that are the subject of proceedings by way of judicial
review, are not unusual. The factors to be taken into account in determining whether to
grant such orders have been identified and explained in a decision of this court,
Okunade v. Minister for Justice [2012] IESC 49, [2012] 3 IR 152 (“Okunade”). The
motion in this case, however, differs from most applications of this kind. This is so not
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only because of the complexity of the legal and factual background to the appeal, and
not only because the application for a stay arises in the context of a statutory appeal
rather than proceedings by way of judicial review. It is also different because a
significant question arises as to whether this application is governed by Okunade at all,
or whether it should be determined by reference to a test developed by the Court of
Justice of the European Union (“the CJEU”) in the context of interim measures pending
a decision as to the validity of a provision of EU law. The DPC says that by reason of
the EU-wide effect of its decision, the test formulated in Okunade does not apply to the
grant or withholding of the stay sought by TikTok. It says that, instead, the application
should be determined using criteria formulated in Joined Cases C-143/88 and C-
92/89, Zuckerfabrik Süderdithmarschen AG v Hauptzollamt Itzehoe and Zuckerfabrik
Soest GmbH v. Hauptzollamt Paderborn (EU:C:1991:65) (“Zuckerfabrik”).
4. Two issues thus arise: which of these tests governs the application for a stay, and how
does that test fall to be applied in this case?
The parties
5. The involved legal and factual background to the impugned decision starts with the
GDPR. This Regulation has as its object the protection of natural persons with regard
to the processing of their personal data. It mandates the establishment in each Member
State of the European Union of one or more independent public authorities – ‘the
supervisory authority’. That authority is responsible for monitoring the application of
the Regulation (Article 51). The DPC is designated by the 2018 Act as ‘the supervisory
authority’ in this jurisdiction for the purposes of the GDPR (s. 11 of the 2018 Act).
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6. TikTok – a company established in accordance with Irish law and having its main
establishment here – describes itself as ‘the service provider of the Tik Tok platform for
the EEA and Switzerland’. The ‘TikTok platform’ is a social media service that enables
its users to create, share and watch short form video content. TikTok’s ultimate parent
is ByteDance Ltd., a Cayman Islands registered company. It forms part of a group of
entities (“ByteDance”) some of which are based in China (“the China Group Entities”).
7. When providing services to users of its platform, TikTok processes certain personal
data of those users and (together with TikTok Information Technologies UK Ltd.)
functions in the EEA as the ‘controller’ in respect of that data within the meaning of
Article 4(7) of the GDPR. By reason of that status, TikTok is subject to particular
obligations, insofar as it is the person that determines the purposes and means of the
processing of personal data.
8. The operation of the TikTok platform involves the processing of such data on a
significant scale: there were more than 1 billion monthly active users of these services
as of September 2021, and between July and December 2024 TikTok had on average
159 million monthly active recipients in the European Union Member State countries
alone. As explained shortly, some of that data processing takes place in jurisdictions
outside the EEA (“third countries”), and the GDPR imposes significant restrictions on
cross-border processing of this kind (the GDPR has been incorporated into the EEA
Agreement).
9. The supervisory authorities may discharge an important role in regulating transfers of
personal data to third countries. Having regard to the location of TikTok’s main
establishment, the DPC is competent to act as the ‘lead supervisory authority’ in respect
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of any cross-border processing carried out by TikTok (Article 56 of the GDPR). As
such, the DPC is ‘the sole interlocutor’ under the GDPR for that cross-border
processing (Article 56(6)). While, pursuant to Article 60, it discharges that function in
co-operation with other supervisory authorities, the GDPR envisages the lead
supervisory authority operating as what Advocate General Bobek in Case C-645/19
Facebook Ireland Ltd. and ors. v. Gegevensbeschermingautoriteit (EU:C:2021:5)
described as ‘a one-stop-shop’.
The legal context
10. The law of the European Union attaches high importance to the protection of personal
data. Article 8 of the Charter of Fundamental Rights of the European Union (“the
Charter”) expressly guarantees that protection, and this is given effect to by inter alia
the GDPR.
11. These protections can be readily applied to activities occurring within the EU/EEA.
However, more difficult questions present themselves when data is transferred to third
countries. In an effort to ensure that similar protections can be enforced in respect of
such transferred data, Chapter V of the GDPR lays down conditions that must be
complied with in making such transfers. These transfers may, in particular, be
authorised where they are made to a jurisdiction which the European Commission has
determined ensures an adequate level of protection for such data. Provision is made for
these ‘adequacy decisions’ of the European Commission by Article 45 of the GDPR.
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12. In respect of transfers of data to third countries that do not benefit from an adequacy
decision, Article 46 of the GDPR provides that a controller or processor must ensure
that ‘appropriate safeguards’ are provided, and that such transfers may only occur on
condition that ‘enforceable data subject rights and effective legal remedies for data
subjects are available.’ These safeguards, rights and remedies may be afforded by inter
alia what are termed ‘standard data protection clauses’ (“SCCs”) adopted by the
European Commission. TikTok adopted the SCCs approved in 2010 (Commission
Decision 2010/87/EU), thereafter replacing these with SCCs that had been similarly
approved in 2021 (Commission Implementing Decision (EU) 2021/914).
13. However, neither the existence of, nor the fact of compliance with, SCCs exhausts the
obligation imposed by the GDPR on controllers or processors who are responsible for
the transfer to a third country of personal data. The CJEU has decided that while that
third country is not required to have protections governing personal data that are
identical to those applicable in the EU, those responsible for data transfers must ensure
‘a level of protection … that is essentially equivalent to that guaranteed within the
European Union by virtue of the regulation, read in the light of the Charter’ (Case C-
311/18 Data Protection Commissioner v. Facebook Ireland Ltd. and Maximillian
Schrems (EU:C:2020:559) (“Schrems II”) at para. 94). If the jurisdiction to which the
data is transferred does not itself provide this ‘essentially equivalent’ level of
protection, then it is incumbent on the data controller to put in place supplementary
measures that compensate for the lack of such protection.
14. It is, moreover, specifically provided in Article 13(1)(f) of the GDPR that where
personal data relating to a data subject is collected from that person, the controller shall
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at the time the data is obtained provide the data subject with inter alia information that
the controller intends to transfer the personal data to a third country as well as
information regarding the existence or absence of an adequacy decision by the
Commission, or reference to the appropriate or suitable safeguards attending the
transfer, together with the means by which to obtain a copy of, or access to, same.
The data processing
15. The impugned decision, and the investigation that preceded it, arises from the fact that
personnel of the China Group Entities perform a range of tasks and functions which,
TikTok says, are critical to the operation of the TikTok platform. During the period
relevant to that decision, these tasks included functions related to software engineering,
maintenance and development. In order to execute these functions, staff of the China
Group Entities required access to, and use of, the personal data of TikTok users. TikTok
says that the analysis of this data by these staff enabled research and development,
security, analytics, online payments and customer and technical support. It also says
that there were significant limitations on the identity of staff who could access the data,
and the purposes for which they were permitted to do so. The DPC has said that these
tasks and functions ‘appear essential to the operation of the Tik Tok platform.’
16. All of this involved not merely the processing of data of TikTok users but, more
importantly for present purposes, the accessing of that data by personnel in the People’s
Republic of China (“China”). That jurisdiction does not benefit from an adequacy
decision of the European Commission. However, while the personnel who engaged in
this processing are based in China, the data was not permanently stored there. It was
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stored in data centres in Singapore, Malaysia and the United States. The personnel of
the China Group Entities accessed this data by what TikTok terms as ‘secure and
controlled remote access’. In order to do this, the data must be transferred to and
temporarily processed in China.
17. The potential interaction between personnel of the China Group Entities who are based
in China and this data, might be seen as arising in two ways. First, they have the ability
to remotely access the data physically located in Singapore, Malaysia or the United
States, as the case may be. Second, where they actually access this data, they may and
do temporarily transfer some of it to China. This temporary transfer, TikTok says, is
necessary for the data to be available remotely to be displayed to, and used by,
personnel of the China Group Entities. At some points in the proceedings the term
‘remote access solution’ was used to describe the process whereby the data is thus
temporarily transferred to, and processed in China by, personnel of the China Group
Entities. Without local temporary processing, remote access is not possible.
18. Some of the issues in the substantive appeal depend on questions arising from these
two related aspects (there is a third feature of this that emerged in the course of the DPC
investigation, which is that contrary to representations made by TikTok in the course
of that process, some personal data of EEA users was in fact being stored on servers in
China, but while – understandably – a source of grave concern to the DPC, this is not
relevant to the decision of the DPC in issue here). However, two points in particular
should be noted. First, the DPC accepted TikTok’s position that insofar as the issues
that were presented by the inquiry are concerned, there is no permanent ‘bulk’ storage
of EEA users’ personal data in China: remote access involves processing data
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permanently stored in other countries, while temporary transfer does not result in
permanent ‘bulk’ storage. Second, TikTok does not dispute the DPC’s conclusion that
the transfers were, at various times, made to between 16 and 26 China Group Entities,
with access to the data being granted to thousands of individuals working in those
entities, and that where remote access was authorised for a specific business purpose it
was in general authorised for up to 12 months.
19. Nor can there be any question but that that the data in question constitutes ‘personal
data’ for the purposes of the GDPR. At the times relevant to the impugned decision, it
comprised the customer’s user ID and TikTok username, subscriber data, user profile,
interaction and activity data, content data, technical and advertising data and purchase
information. It also included survey responses, payment information, information as to
the user’s location, advertising data and details of push notifications sent to users.
Collectively, these would show the user’s engagement on the platform, content
generated by the user, interest category selection, inferred demographic and interest
profiles, and the purchase history of the user. While TikTok says that it is not its
intention to collect from users the categories of sensitive personal data referred to in
Article 9 of the GDPR (which enjoys particular protection), it accepts that such data
may be collected incidentally or be uploaded by the user.
20. In the course of 2021, the DPC became concerned as to whether the conditions imposed
by the GDPR in respect of transfers of data outside the EEA were being complied with
at the interface between TikTok, its users’ data, and the personnel of the China Group
Entities who were undertaking the various functions to which I have earlier referred.
To that end, in September of that year, it opened an inquiry under s. 110 of the 2018
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Act with a view to examining TikTok’s compliance with the requirements of the GDPR
as they relate to the transfer to China of the personal data of users of the TikTok
platform in the EEA, and the provision of information to users in relation to such
transfers as required by Article 13(1)(f) of the GDPR.
The inquiry
21. The inquiry spanned over a period of three and half years, generating a significant body
of inter partes correspondence, submissions, assessments and supporting material, and
a preliminary draft decision, draft decision and a final decision from the DPC that
extends to some eight hundred and thirty dense paragraphs. The proceedings are
characterised by an extensive collection of lengthy affidavits, thousands of pages of
exhibits, and pleadings.
22. At the nub, however, of a substantial part of the statutory appeal is the view of the DPC
that where an undertaking such as TikTok transfers data to a third country, and where
the DPC conducts an investigation into the transfer of that data, the undertaking is
required to satisfy the DPC that it has assessed the law of the jurisdiction to which the
data is being transferred, and that it has by that assessment satisfied itself that having
regard to that law and any relevant measures adopted by the undertaking, the level of
protection of the personal data is essentially equivalent to that provided by the law of
the European Union. If it has not so satisfied itself, the DPC says, the data transfers are
unlawful. In this regard the DPC makes reference to what it terms the ‘accountability
obligations’ expressed in Articles 5(2) and 24 of GDPR and the obligations in Chapter
V of the GDPR. The DPC says in its decision that ‘a controller or processor must be
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able to demonstrate that is has verified and guaranteed an essentially equivalent level
of protection for the transferred personal data’.
23. From there, the DPC states, it is its responsibility to review the assessments made by
the controller so as to ascertain whether the transfers comply with the GDPR. If the
controller is not in a position to guarantee the requisite level of protection, then the DPC
as the competent supervisory authority is (the DPC says) empowered to suspend or end
the transfers. It is to be stressed that in framing the obligation of the data controller in
this way, the DPC may find a breach by the controller of the GDPR in and around data
transfers to a third country without the DPC itself determining whether the country to
which the data is transferred provides the requisite level of protection (with or without
regard to any SCCs or supplementary measures). It is sufficient, on this view, for the
DPC to decide that the data controller has acted unlawfully in itself failing to conduct
an adequate assessment and in failing to satisfy the DPC that it has done so.
24. TikTok accepted at an early stage that it could not say that the law of China provided
the requisite protection based on the SCCs alone. It noted, in particular, that there are
Chinese laws that materially diverge from EU standards (these are referred to by the
DPC as ‘the problematic laws’). However, TikTok said that this did not matter, having
regard to two factors. The first was the steps TikTok had taken to ensure the protection
of that data and the identity of the persons to which it related (these protections were,
TikTok said, further enhanced as the inquiry proceeded by means of a series of
measures adopted under what it terms ‘Project Clover’, to which I will later return).
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25. The second arose from the fact that the data was not itself permanently stored in China.
TikTok said that insofar as the fact that TikTok personnel in China could access the
data remotely meant that the data had been transferred to that jurisdiction, Chinese law
did not permit the authorities there to compel those personnel to grant them access to
the data. TikTok contended that the ‘Chinese authorities are not lawfully entitled to
compel organisations and individuals to provide data that are not domestically stored
within the territory of China’. This was referred to throughout as the ‘territoriality
principle’. An expert in Chinese law whose reports were furnished by TikTok to the
DPC (Professor Xu) said, in his second report (dated 8 September 2023), that the
Chinese authorities did not have the power to compel companies related to TikTok
based in China, or those working for them, to disclose remotely accessible EEA user
data that is stored on servers outside of China in the specific circumstances of the
transfers the subject of the DPC inquiry. That report was furnished by TikTok to the
DPC on 8 September 2023 as part of its response to a Preliminary Draft Decision of the
DPC that had been circulated in May 2023 (“the PDD”). In the PDD, the DPC had
proposed making orders suspending data transfers and requiring TikTok to bring its
processing into compliance. There, the DPC recorded as follows (para. 367):
‘TikTok Ireland has failed to clarify precisely how the territoriality principle
applies in the context of the relevant laws and practices and to clarify whether,
and the extent to which such laws may apply in the context of the transfers. This
directly impacts on its ability to select appropriate measures and its ability to
verify, guarantee and demonstrate that the supplementary measures and the
SCCs are effective in respect of potentially problematic laws.’
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26. TikTok’s response to the PDD was followed by an extensive exchange of
correspondence between the parties, included in which was a specific request by letter
dated 8 February 2024 from the DPC that TikTok clarify inter alia whether remote
access by personnel in China involved storage of EEA user data, including temporary
storage.
27. The second report of Professor Xu was also appended to a revised Data Transfer
Assessment (“DTA”) sent as part of the inquiry by TikTok to the DPC on 31 July 2024.
The following was said in that DTA:
‘taking account of the relevant aspects of China’s current legal framework in
the specific context of the secure Remote Authorised Access, the SCCs together
with the various Supplementary Measures ensure that EEA User Data is
afforded a level of protection essentially equivalent to that guaranteed within
the European Union. There is no impediment as a matter of Chinese law to the
China Group Entities complying with their obligations under the SCCs in the
specific circumstances of the transfers made by way of remote access and the
China Group Entities are able to satisfy those obligations.’
28. A footnote to that DTA (footnote 113) recorded as follows (referring to ‘Fangda’, a
leading Chinese law firm which advised TikTok, and to Professor Xu’s conclusions
including those to which I have just referred):
‘We have been advised by Fangda and Professor Xu that the transient
processing inherent to the facilitation of remote access in China does not alter
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the above analysis. This is because the relevant data is still stored outside of
China (and only remotely accessible from within China), and so is still subject
to the requirements set out above. In addition: (i) such transient processing is
strictly protected by the constitutional right to confidentiality of correspondence
under Article 40 of the PRC Constitution and (ii) such transiently processed
data would in any event still be considered offshore data when considering the
scope of Chinese authorities jurisdiction…’
29. The DPC says that it was not furnished with the content of the advice furnished by
Fangda Partners and Professor Xu to TikTok as referred to here. It does not appear to
have sought it. In the principal affidavit sworn by the DPC for the purposes of resisting
the stay application, it says that footnote 113 constituted TikTok’s first and up to that
point only engagement with the treatment under Chinese law of the personal data of
EEA users of TikTok’s services transferred to China and processed there on the devices
of employees of China Group Entities. It stresses that this was notwithstanding the fact
that the DPC had specifically raised this issue, most recently in its letter of 8 February
2024. Professor Xu, the DPC says, first dealt with this point in a report delivered on
18 March 2025. It also says that neither that report, nor this footnote, consider the
potential power of the Chinese authorities to directly access data processed on devices
in China. TikTok, on the other hand, says in the affidavits sworn for the purposes of
the stay application that at the time it delivered the DTA it ‘understood the DPC’s
concerns to be those set out in the PDD, which made no mention of the temporary
processing’.
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30. Article 60 of the GDPR requires that where a lead supervisory authority proposes to
make a decision of the kind in issue here, it should submit a draft of that decision to
other supervisory authorities. This allows those authorities to express any objections to
the draft decision. If agreement cannot be reached in relation to those views, provision
is made for the European Data Protection Board (“the EDPB”) to intervene (I will return
later to this body, and the process envisaged by these provisions). On 14 February 2025,
TikTok advised the DPC that it intended to share an update on its new safeguards and
security measures implemented under Project Clover, stating that this would be
furnished before 10 March 2025. On 21 February 2025, the DPC advised TikTok that
it had finalised and circulated its draft decision pursuant to these provisions. A copy of
the draft decision was provided to TikTok. In that draft decision, the DPC found that
TikTok had ‘continually failed’ to address the application of Chinese law to data that
was temporarily transferred to and processed in China in the course of remote access.
The decision recorded that TikTok had ‘overlooked’ how the territoriality principle
applied in respect of that data.
31. The draft decision proposed that it was appropriate, necessary and proportionate to
order the suspension of the data transfers on the basis that TikTok had infringed Article
46 of the GDPR. Particular emphasis was placed by the DPC on its view that TikTok
had failed to address whether data that was temporarily transferred to China could be
accessed by the authorities there. TikTok responded on 14 March 2025, requesting that
the DPC withdraw the draft decision. In that letter it drew the DPC’s attention to
footnote 113 to its July 2024 DTA. TikTok said inter alia that the draft decision
contained and was premised on a fundamental factual error insofar as it said that TikTok
had not assessed how Chinese law applied to the processing of EEA User Data. It also
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complained about the failure to allow TikTok to make submissions in response to the
DPC’s view, as expressed in the draft decision, that Project Clover was insufficient to
ensure essentially equivalent protection.
32. On 18 March TikTok provided a third opinion of Professor Xu. That third opinion
recorded that Professor Xu had understood at the time he delivered his second opinion
that the data transfers entailed some temporary processing on computer information
systems in China as a result of remote access and that, for the avoidance of any doubt,
it was his opinion that the principles set out in his second opinion applied to the data
temporarily processed in China. On 25 March the DPC refused TikTok’s request that
the draft decision be withdrawn. The final decision was adopted on 30 April 2025.
The decision
33. The decision of the DPC was made under s. 111 of the 2018 Act, and Article 60 of the
GDPR. In it, the DPC found that TikTok had infringed Article 46 of the GDPR by
carrying out the data transfers while failing to verify, guarantee and demonstrate that
EEA User Data subject to those transfers was afforded a level of protection essentially
equivalent to that guaranteed within the European Union. It expressed this finding as
follows (para. 373 of the decision):
‘The DPC has considered all information submitted by TikTok Ireland during
the Inquiry regarding the territoriality principle. This includes the Legal
Opinions, the updated Data Transfer Assessments, and the submissions made
after the Preliminary Draft Decision. However, for the reasons set out below,
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the DPC finds that TikTok Ireland has failed, on a continuing basis, to
adequately assess the level of protection of EEA Users under the Chinese legal
framework in respect of the territoriality principle and the divergences that
TikTok Ireland acknowledges to exist. In particular, TikTok Ireland failed to
adequately assess the law and practices in effect in China regarding the level
of protection of personal data of EEA Users the subject of the Data Transfers.’
34. Key to that conclusion was the DPC’s opinion that TikTok had ‘continually failed to
address the application of those laws to the processing of EEA User Data that does
occur on computer information systems in China by means of the Remote Access
Solution’ (para. 375), that it ‘has not considered the application of the territoriality
principle to the personal data while that data is processed in China’ (para. 377), that
TikTok’s ‘assessment of the territoriality principle failed to properly address the fact
that the personal data routinely subject to the Remote Access Solution is processed in
China, and therefore is located within China albeit on a temporary basis’ (para. 380),
and that ‘it has failed to consider how Chinese law and practices apply in respect of the
personal data that is transferred to China’ (para. 383). The decision recorded that
TikTok’s assessment ‘appears to assume’ that the only form of problematic access that
could occur was by Chinese authorities compelling access to EEA user data stored
outside China but ‘overlooks’ access that may be obtained while data is temporarily
processed (para. 384). It stressed that TikTok had not addressed whether access by
Chinese authorities to those computer information systems could lawfully occur
without the knowledge of the China Group Entities and/or their employees (para. 410).
It said ‘TikTok Ireland’s assessment of the territoriality principle failed to consider the
issue of Chinese authorities obtaining access to EEA User Data that was routinely
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transferred to China and that was temporarily processed in China …’ (para. 512). The
DPC decision referred (at para. 96) to the fact that TikTok had delivered the third
opinion of Professor Xu on 18 March 2025, and specifically recorded that it had
considered that report, commenting ‘[h]owever, fundamental flaws in TikTok Ireland’s
assessment … remain unaddressed and are ongoing’ (para. 691).
35. Essentially, as the DPC itself puts it, the decision found that TikTok had not provided
proper verification and guarantees in respect of its account of Chinese law. It
emphasises that the decision expressly referred to the lack of legal authorities put
forward by TikTok in respect of that interpretation. In its decision, the DPC did not
provide any further reasoning as to why the third report of Professor Xu was not
accepted by it, and it did not address footnote 113 of the DTA. In the course of its
argument in this appeal, however, it highlights the passages in the PDD and
correspondence to which I have earlier referred which, it says, made quite clear that it
was concerned at all times with the protections afforded by Chinese law to the
temporarily transferred data.
36. The DPC also found that TikTok had infringed Article 13(1)(f) of the GDPR from 29
July 2020 to 1 December 2022 by failing to provide data subjects with the required
information on its transfers of personal data to China and information as to how the
processing involved remote access to personal data stored in Singapore, Malaysia and
the United States by personnel based in China (these deficiencies were found to have
been rectified in TikTok’s December 2022 EEA Privacy Policy).
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37. The decision concluded that where TikTok had failed to verify, guarantee and
demonstrate that the supplementary measures and the SCCs were effective to ensure
that the personal data of EEA users was afforded a level of protection essentially
equivalent to that guaranteed within the EU, the decision in Schrems II meant that the
DPC was empowered to suspend or end the transfers. It found that TikTok had not
established that the risk of access by the Chinese authorities to EEA user data the
subject of the data transfers was theoretical, remote, or hypothetical and unlikely to
arise in practice, as TikTok had contended. Here, the DPC again emphasised that
TikTok’s assessments had failed to clarify whether and the extent to which the
‘problematic laws’ may apply in the context of the transfers, and therefore failed to set
out in a clear way the deficiencies it acknowledged existed in the Chinese legal
framework. Because the assessment was flawed, the DPC said, this interfered with
TikTok’s ability to select appropriate safeguards and supplementary measures, and
prevented it from demonstrating an essentially equivalent level of protection.
Similarly, the decision concluded that while Project Clover (which is addressed by the
DPC in the context of whether data transfers should be suspended) resulted in
significant changes to the manner in which the data transfers were implemented, it had
not changed the fact that the data transfers on an ongoing basis entailed the processing
of EEA user data on computer information systems in China.
38. Having found that it was, in the circumstances, appropriate, necessary and
proportionate to do so, the DPC made an order pursuant to Article 58(2)(j) of the GDPR
requiring TikTok to suspend the data transfers. In reaching this conclusion it explained
(at para. 708):
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‘There is a risk to EEA User Data where this data is transferred to a third
country that does not provide a level of protection that is essentially equivalent,
and for which, TikTok Ireland has not verified, guaranteed and demonstrated
that the supplementary measures and the SCCs are effective to ensure that the
personal data of the EEA users is afforded a level of protection essentially
equivalent to that guaranteed within the EU … this infringement is serious in
nature.’
39. The decision thus directed TikTok to ensure ‘that any EEA User Data located in China,
as a result of the Remote Access Solution, when the order takes effect must cease being
processed in China immediately at that point in time. This includes any ongoing
temporary processing of EEA User Data on computer information systems in China’
(para. 704). This part of the order is referred to throughout as ‘the suspension order’.
40. The DPC also made an order pursuant to Article 58(2)(d) of the GDPR requiring
TikTok to bring the processing into compliance in the manner detailed in the decision
(‘the compliance order’). The effect of this order is to require that TikTok remove
access to EEA user data by China Group Entity personnel. The decision provides for a
process intended to enable TikTok to implement measures giving effect to the
compliance order and the suspension order. This involves it being given approximately
three months from the decision to tell the DPC how it plans to give effect to these
orders, with the DPC then engaging with TikTok on that plan, and following agreement
to the terms of that plan, TikTok having a further two months to give effect to it.
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41. The DPC imposed administrative fines pursuant to Article 58(2)(i) of the GDPR in the
amount of €485M and €45M. It made clear in its decision that the suspension might, in
the future, be lifted (at para. 673):
‘This order provides for the situation whereby, if measures become available to
make the Data Transfers compliant, then the suspension could be re-considered.
The DPC is not imposing a permanent ban on the Data Transfers, recognising
that new measures, not currently in operation, may yet be capable of being
developed and implemented by TikTok Ireland to compensate for the
deficiencies identified in this Decision. If that situation were to arise, the DPC
would then be in a position to reconsider the suspension.’
The Appeal
42. In these proceedings, TikTok alleges a series of errors in grounding its statutory appeal
against the decision (it has also instituted judicial review proceedings, although these
are not before the court). It says, in particular, that the finding in the decision that
TikTok had continually failed to address the application of Chinese law to the
temporary data was ‘the lynchpin of the Decision’ was a ‘new finding’, was premised
on a ‘new and different concern’ that was not highlighted in the PDD circulated in May
2023, and that this finding was erroneous.
43. TikTok says that there was a failure by the DPC to either assess the third opinion of
Professor Xu or provide any explanation as to why that opinion was rejected by the
DPC. It stresses that the DPC did not advert in its decision to footnote 113 to the July
2024 DTA. It objects that ‘Project Clover’ was addressed by the DPC for the first time
21
in the draft decision, TikTok not having had the opportunity to make submissions on
that assessment. Project Clover, on TikTok’s case, involved the introduction of very
significant changes to its operations, costing in the region of €12bn over a period of ten
years. Project Clover has three key elements: (a) the creation of a European Enclave
for the default storage of EEA user data to which personnel of the China Group Entities
do not have access, (b) the removal of access by China Group Entities personnel to
more private data (‘protected data’) so that those personnel can remotely access only
what it terms ‘allowable data’ in TikTok’s internal systems, and (c) the implementation
of pseudonymisation measures in respect of the data that personnel of the China Group
Entities are authorised to access to prevent the re-identification of EEA users. All of
this (it is said) results in a significant difference in the content of the data being
temporarily processed. It is also said that this minimises data flows so that only a limited
subset of EEA user data is transferred from the European Enclave to TikTok’s global
data centres in Singapore, the United States and Malaysia in controlled circumstances,
and where necessary for the proper operation of the global TikTok platform. Project
Clover is supervised by an independent third-party security provider. Included in the
evidence submitted by TikTok for the purposes of the stay application was an affidavit
from an independent expert attesting to the effectiveness of the pseudonymisation
measures forming part of the project, which the expert describes as ‘appropriate and in
line with industry good practice’.
44. TikTok says that the DPC having originally failed to identify the temporal scope of its
inquiry, it then (at the end of 2022, and in its Preliminary Draft Decision issued on 17
May 2023) said that it was concerned with transfers taking place from 29 July 2020 and
‘ongoing’, limiting this for the first time to the period from 29 July 2020 to 17 May
22
2023 in the draft decision. This, TikTok says, had the effect that its ongoing compliance
with Article 46(1) of the GDPR and the steps taken on foot of Project Clover were not
assessed and that its rights to fair procedures were in this way breached. The DPC was
advised of measures being put in place as part of Project Clover on 28 March 2023: by
thereafter retrospectively and without notification changing the time span of the inquiry
without notice in the interim, TikTok says, Project Clover never became part of the
substantive assessment made by the DPC. While the new processes thereby introduced
by TikTok were considered at the point of the DPC’s consideration of remedy, TikTok
says that the DPC never identified precisely what its concerns with Project Clover
actually were.
45. Referring to Schrems II, TikTok says that the power to suspend the transfer of personal
data to a third country arises only where the controller or processor has not itself
suspended or put an end to the transfer, and where in the view of the supervisory
authority (in the light of all the circumstances of the data transfers), the SCCs are not
or cannot be complied with in the third country, and where the protection of the data
transferred that is required by EU law cannot be ensured by other means. Therefore,
TikTok says, the DPC could not find either a breach of Article 46 or make a suspension
order where it has not itself conducted an assessment of relevant aspects of the Chinese
legal system. It objects that the DPC thereby wrongly reversed the burden of proof of
inadequacy, shifting it via ‘the accountability obligation’, onto TikTok. It contends that
the DPC did not conduct a risk analysis as, TikTok says, is required by Article 24 of
the GDPR, and as it ought to have done before making a suspension order.
23
46. There are other issues identified by TikTok. It argues that the DPC erred in finding that
its privacy policy in place up to December 2022 was in breach of Article 13 of the
GDPR. It says that absent a sustainable finding of negligence (which it says was not
made) administrative fines should not have been imposed on it. TikTok argues that the
DPC erred in calculating the fine imposed upon it by reference to the turnover of
ByteDance, in particular in circumstances where it did not impute liability to
ByteDance for the infringements found in the decision. It argues that the DPC erred in
wrongly concluding that TikTok and ByteDance form part of the same undertaking and
in misapplying a presumption of decisive influence. Complaints are also made that
ByteDance was not advised by the DPC of its intention to determine the fine in this
way, and that the incorrect financial year was chosen for the purposes of calculating the
turnover on the basis of which the fine was imposed. It is also said that the DPC failed
to provide adequate reasons for its decision, and that the fines are not proportionate.
The legal basis for the stay application
47. The inquiry the subject of this appeal is governed by Part 6 of the 2018 Act. This
includes ss. 142, 143 and 150. Section 142 provides for an appeal to the High Court or
Circuit Court against the imposition of an administrative fine (the relevant jurisdiction
depends on the amount of the fine). Section 143(1) provides that where a controller or
processor does not appeal in accordance with s. 142, ‘the Commission shall, as soon as
is practicable after the expiration of the period referred to in that subsection, and on
notice to the controller or processor concerned, make an application in a summary
manner to the Circuit Court for confirmation of the decision’. Section 143(2) allows
the Circuit Court, on the hearing of an application under subsection (1), to confirm the
decision the subject of the application unless the court sees ‘good reason not to do so’.
24
Section 150 provides that a person affected by certain legally binding decisions of the
Commission may, within 28 days of notice of that decision, appeal same, the High
Court and Circuit Court enjoying concurrent jurisdiction over such appeals.
48. The decision of the DPC provides that the order to suspend data transfers will take
effect on a date six months from the later of (i) the date on which the period allowed
for an appeal against the DPC’s final decision under s. 150 of the 2018 Act has expired;
and (ii) the date on which the period allowed for the bringing of an application for
annulment of any decision of the EDPB under Article 263 of the Treaty on the
Functioning of the European Union (“TFEU”) has expired. Neither the decision nor
the 2018 Act specifies whether, and if so how, the bringing of an appeal against a
decision within the period fixed by s. 150 impacts upon the efficacy of that decision.
49. However, the parties agree that the effect of these provisions is that the obligation to
pay the administrative fines does not arise until the confirmation of the Circuit Court
has issued under s. 143. They also agree that because TikTok has appealed the fine, the
payment obligation is effectively stayed. The parties were in further agreement that
there was no automatic stay on the suspensory or corrective orders made by the DPC,
and they agree that the terms of the decision did not itself result in any such stay once
an appeal was brought.
50. While the parties also agreed that the High Court had jurisdiction to grant such a stay,
their respective understandings of the basis on which the court had the power to make
such an order, diverged. The DPC argued that the power derived from EU law, citing
the decision in Case C-213/89 R v. Secretary of State for Transport, ex parte:
25
Factortame Ltd. and others (EU:C:1990:257) (“Factortame”’) at para. 21. TikTok
contended that the power derived from the inherent jurisdiction of the High Court, and
the provisions of O. 84C r. 8(2) of the Rules of the Superior Courts (“RSC”). That
provision – part of the Order governing statutory appeals generally – states that on the
return date of a notice of motion initiating such an appeal the court may ‘where it
appears just and proper, make orders for relief of an interlocutory nature, whether in
the nature of an injunction or otherwise.’
51. In circumstances where the parties are in agreement that there is a jurisdiction to grant
a stay, it is not necessary to choose between these different versions of its source.
Indeed, it appears to me that it is at the very least arguable that the power to make what
is in substance a form of interlocutory injunction in support of a legal proceeding before
the court (the statutory appeal) can be rooted in s. 28(8) of the Supreme Court of
Judicature (Ireland) Act 1877. That being so, and while noting the force, logic and
coherence of the judgment of Hogan J. insofar as he locates the authority to make such
an order in Articles 40.3.2° and 34 of the Constitution, for my part I would prefer to
postpone a consideration of this issue to a case in which it is both necessary to answer
the question, and it has been fully argued. It is, of course, the case that the Constitution
envisages a scheme of effective legal remedies. What may not be quite as clear is what,
precisely, this entails, when the entitlement to such remedies arises, what remedies,
exactly, it envisages, whether the initial obligation to enable those remedies in
particular classes of case lies with the Oireachtas, or with the courts, and whether there
are situations in which the Oireachtas can validly decide not to enable suspensory orders
of a particular kind in a particular situation. The answers to these questions may well
throw further light on whether, and if so when, Articles 40.3.2° or 34 of the Constitution
26
afford a free-standing legal authority for such relief, or whether they are better viewed
as a basis for implying the power to grant such relief into a statutory scheme providing
for appeals of the kind in issue here.
The stay
52. As I have previously observed, the decision was to take effect six months after its
delivery on 30 April 2025. The appeal was commenced by originating notice of motion
issued on 27 May, a stay being sought on 5 June at the same time as an application was
made to admit the proceedings to the High Court’s Commercial List. A temporary stay
was then granted, and this was continued until the hearing of the stay motion, being
thereafter continued again until the determination of that application.
53. TikTok contended that the legal test fixed for that application was as stated in Okunade.
There, Clarke J. (as he then was) (at para. 104) explained how a court should proceed
where it is asked in the course of judicial review proceedings to stay or injunct the
operation of an administrative measure. He explained that the court should first
determine whether the applicant has established an arguable case on the merits; if not
the application must be refused. If such an arguable case is established, the court should
consider where the greatest risk of injustice would lie. In deciding that question it
should give ‘appropriate weight’ to the orderly implementation of measures which are
prima facie valid. It should give such weight as may be appropriate (if any) to any
public interest in the orderly operation of the particular scheme in which the measure
under challenge was made and give appropriate weight (if any) to any additional factors
arising on the facts of the individual case which would heighten the risk to the public
27
interest of the specific measure under challenge not being implemented pending
resolution of the proceedings. The court, Clarke J. said, should moreover give ‘all due
weight’ to the consequences for the applicant of being required to comply with the
measure under challenge in circumstances where that measure may be found to be
unlawful, it should, in those limited cases where it may be relevant, have regard to
whether damages are available and would be an adequate remedy, and it also should
consider whether damages could be an adequate remedy arising from an undertaking as
to damages. Finally, he said ‘subject to the issues arising on the judicial review not
involving detailed investigation of fact or complex questions of law, the court can place
all due weight on the strength or weakness of the applicant's case’ (id.).
54. The DPC, in response, contended that the correct approach was that adopted by the
CJEU in Zuckerfabrik. This requires establishment of three distinct conditions: (a) that
there are ‘serious doubts as to the validity of’ the measure in question, (b) that a stay is
required as a matter of urgency in the sense that it is necessary in order to avoid serious
and irreversible damage to the party seeking the stay, and (c) that taking account of the
interests of the EU, the urgency outweighs those interests and any other interests arising
(see Case C-334/95 Krüger GmbH & Co. KG v. Hauptzollmamt Hamburg-Jonas
(EU:C:1997:378) at paras. 43-47 and the summary in the judgment of Collins J. in
Three Ireland (Hutchinson) Ltd. and others v. Commission for Communications
Regulation [2022] IECA 300 (“Three”), in particular, at para. 70).
55. The differences between the Okunade test, and that formulated in Zuckerfabrik may be
threefold. First, it has been suggested that the Zuckerfabrik formulation might be
different from the threshold of ‘arguability’ arising in domestic law, in the sense that it
28
may be necessary to establish a greater degree of doubt as to the validity of the measure
than applicable in the domestic test (Pringle v. Ireland [2012] IESC 47, [2013] 3 IR 1
at paras. 484-485). This, it should be observed is not without doubt: in the course of his
judgment in Eircom Ltd. v. Commission for Communications Regulation [2022] IEHC
165 (at para. 31), MacDonald J. suggested that the requirement that there be ‘serious
doubts’ as to the validity of the EU measure arising under Zuckerfabrik might be
‘substantially the same’ as the requirement in domestic law that there be a serious issue
to be tried, and Mulcahy J. proceeded on that basis in his judgment in this case. It is not
necessary here for me to decide if he was correct in so doing, but I cannot but observe
that the confusion around this issue may be a result of the fact that the test for what is
a ‘serious doubt’ for the purposes of the Zuckerfabrik test may itself be variable,
depending in particular upon the urgency attending the award of interim measures (see
Henry G. Schermers and Denis F. Waelbroeck Judicial Protection in the European
Union (6th edn, Kluwer Law International 2001) at §1401).
56. Second, it has been proposed that the Zuckerfabrik test envisages that interim relief will
not be available unless a threshold of ‘urgency’ is met, the ‘irreparable damage’ that
is viewed as being part of this requirement not being satisfied by purely financial loss,
at least absent very unusual circumstances. Third, while Okunade requires that once
arguability is made out, the court engage in a composite analysis that is ultimately
directed to where the least risk of injustice lies, Zuckerfabrik seems on at least one view
to involve a staged test so that if an applicant fails to establish a probability of serious
and irreparable damage, the application for a stay fails without any necessity to address
the balance of interests (although, as TikTok observed in the course of its submissions,
it has been said that a court hearing an application for interim measures enjoys a broad
29
discretion, and that there is no rule of EU law imposing a pre-established scheme of
analysis on which the application must be assessed (Case C-397/24 P(R) AQ v.
European Chemicals Agency (ECHA) (EU:C:2024:634) at para. 47)).
57. The DPC maintained that its decision fell to be considered by reference to Zuckerfabrik
rather than Okunade because of the particular position of a lead supervisory authority
under the GDPR. In particular, it said that the provisions of Article 60 of the GDPR,
which require mandatory co-operation between supervisory authorities, had the
consequence that the DPC decision was, in effect, a decision of all supervisory
authorities that is binding across the EEA. It also attached importance to the provisions
of Article 65 of the GDPR, which governs the operation of the EDPB. This entity is
established by Article 68 of the GDPR as a union body with legal personality. It is
comprised of the head of one supervisory authority of each Member State. It may also
render decisions under the GDPR that are addressed to and binding upon the lead
supervisory authority and all other national supervisory authorities concerned where it
is not possible to obtain agreement between the national authorities (Article 65(2)). The
DPC maintained that decisions of the EDPB would, were an attempt made to suspend
them, be governed by Zuckerfabrik and thus, decisions of the national supervisory
authorities should be subject to the same legal regime.
58. The parties being in agreement that TikTok’s challenge met both the threshold of
arguability in national law, and the equivalent threshold according to Zuckerfabrik, the
focus of their respective arguments was upon the damage that TikTok contended it
would suffer were the stay not granted, and the injury to the public interest (and the
rights of data subjects) that the DPC argued would follow if the stay were granted.
30
59. While I will return later to the detail of its case in this regard, at a general level TikTok
divides its user data into two categories – ‘protected data’ and ‘allowable data’. It
classifies all user data as ‘protected’ unless it has been defined through TikTok’s
internal governance policies as ‘allowable’. Allowable data, in turn, is divided into
three categories – public data, interoperable data and aggregated data. Public data is
publicly available data on the TikTok platform. Interoperable data is data that is
required to make the application work across different regions of the world (for example
where an EEA user wishes to block a non-EEA user). Aggregated data is statistical
data aggregated from public or interoperable data (for example a count of the number
of public videos posted by a user on a given day in a given country). TikTok contended
that implementation of the suspension and compliance orders would require it to (a)
apply technical measures to anonymise any aggregated EEA user data that can be
accessed remotely by authorised personnel of the China Group Entities, and (b) remove
access to EEA user data that is still accessible to those personnel at the end of the
compliance period.
60. To do this, it says, would involve incurring billions of euro in expenditure, that this
would entail considerable disruption to its workforce and business, and would impact
adversely upon the experience of users. It says that a number of its critical business
processes will be severely impacted if access to the data is removed from the China
Group Entities. It claims that thousands of personnel of those entities will have to be
transferred and relocated outside China in order to enable TikTok to return to the same
level of operations in its critical business processes. That, TikTok says, will result in
the loss of valuable skill and knowledge, and it would not be in a position to return to
31
its previous level of operations until 2029. It says that the measures will be difficult or
impossible to reverse, and that undoing the steps it would have to take would be as
disruptive as putting them in place in the first instance. It also said that these measures
would delay for a short period the introduction of a TikTok service – TikTok shop – in
new countries in the EEA. Stakeholders will, it is said, be driven to competitor
platforms and the degradation of the user experience will damage TikTok’s brand
perception. An expert forensic accountant has prepared a report at TikTok’s request
projecting a consequent lost profit contribution at US$1,716 million, the methodology
of this report being challenged by an expert accountant on whose behalf the DPC has
sworn an affidavit.
61. The DPC, in response (while emphasising the requirement it said was imposed by
Zuckerfabrik that a stay could not be granted to protect purely financial losses, save in
very exceptional and extreme circumstances, and while urging that the losses alleged
by TikTok were entirely financial for this purpose), stresses the central importance to
the proceedings of the rights of TikTok’s EEA users. TikTok having failed to establish
that the protections it had put in place operated to ensure equivalent protection for the
data rights of those availing of its services, the DPC said that transfers were taking place
that did not comply with the GDPR. Those subjects had the right not to have their data
removed from the EU/EEA in those circumstances, and that right was breached for as
long as TikTok was permitted to proceed with the transfers that had been suspended by
the DPC decision. Much of the evidence adduced by TikTok addressing the
consequences for its business if the orders made by the DPC are not stayed are disputed,
and the methodology underlying that evidence was contested by the DPC in its
responding affidavits. The DPC emphasises that the figures suggested by TikTok as
32
representing the financial impact of the decision represent 4.9% of the net profit of
ByteDance for 2024 and just 1% of the revenue reported for that year. It also stresses
that neither it nor the court is in a position to interrogate the evidence relied upon by
TikTok in this regard. Much of that evidence is dependent on assumptions produced
primarily by reference to information and considerations internal to TikTok that have
not been independently tested and verified. Moreover, it is said, TikTok’s calculations
of its losses assume that there are no alternatives to the solutions proposed by it to obtain
compliance with the DPC decision.
The High Court judgment
62. The application for a stay proceeded over four days from October 7 to 10, 2025.
Mulcahy J. delivered a detailed and comprehensive judgment on 13 November
explaining why he proposed to grant the stay. His reasoning, essentially, was as follows:
(i) He felt that the decision-making procedure created by the GDPR was novel, and
accordingly that the identification of whether the application is governed by
national procedural law or by the criteria governing an application to stay an
EU measure cannot solely be resolved by reference to the distinctions drawn in
Zuckerfabrik or another decision of the CJEU to which I will come presently,
Case C-432/05 Unibet (London) Ltd. v. Unibet (International) Ltd.
(EU:C:2007:163) (“Unibet”). Instead, he felt, the answer must be found in the
terms of the GDPR itself.
33
(ii) Mulcahy J. stated that it appears from Article 60(6) of that regime that a decision
of a supervisory authority is only binding on the supervisory authorities
concerned, as defined in Article 4(22) of the GDPR. However, he held that
where the transfers in issue are occurring across the EEA, the decision will have
binding effect on most, if not all, supervisory authorities. He held that where the
State has jurisdiction to regulate the activities of a data controller whose main
establishment is in the State, the fact that a decision binds that data controller
within the EU was not a sufficient point of distinction from any other decision
by a national regulator made pursuant to EU law to warrant the disapplication
of national procedural autonomy in proceedings before a national court. He
stated that the novel aspect of the GDPR regime is that the decision binds other
supervisory authorities concerned and observed that this must be understood as
a manifestation of the ‘one-stop shop’ regime. Mulcahy J. held that the decisions
of a lead supervisory authority are not binding as to the interpretation of the
GDPR, rather the purpose is to ensure the integrity of the one-stop shop
mechanism and to enable data subjects and data controllers to deal with a single
supervisory authority in respect of any given issue.
(iii) He found that the GDPR clearly provides that a decision of a supervisory
authority is a decision of that body with the important legal consequence that a
challenge to that decision must be brought in the courts of the Member State in
which that supervisory authority is established. Mulcahy J. stressed that the
GDPR makes no provision for harmonisation of procedural rules for challenges
to decisions made under that Regulation, and noted that Recital 143 of GDPR
expressly provides that ‘proceedings … should be conducted in accordance with
34
that Member State’s procedural law’. The judge stated that the conferring of
jurisdictions on national courts and the express invocation of national
procedural law must be regarded as a deliberate choice by the legislature. He
stated that it would be a surprising omission if the GDPR does require
harmonisation in relation to applications for interim measures.
(iv) He held that since the EDPB is an EU body established under the GDPR, the
Zuckerfabrik criteria would likely apply to interim relief sought in connection
with a challenge to a decision of that body. He said that while any challenge to
a decision adopted by a supervisory authority on the basis of an EDPB ruling
pursuant to the consistency mechanism must still be brought in the Member
State of that lead supervisory authority, where the validity of a decision of the
EDPB is at issue a national court must refer that question to the CJEU for
determination. He held that where the GDPR expressly recognises that the
validity of decisions of supervisory authorities and of the EDPB must be
determined in different fora, there is nothing anomalous about different criteria
applying in relation to decisions the validity of which must be challenged before
national courts or before the CJEU.
(v) The judge found that the relevant case law is based on the proposition that either
national procedural rules apply or the Zuckerfabrik criteria apply, which, he
stated, reflects the reality; if a national court were required to apply the
Zuckerfabrik criteria to a stay application this would involve a departure from
procedural autonomy, insofar as those criteria differ from those applicable to
stay applications in that jurisdiction. He held that there is nothing in the case
35
law of the CJEU or of the national courts which suggests that national
procedural autonomy should not apply to applications for a stay.
(vi) Mulcahy J. noted that the issue in the application before him arose from the
procedural rules applicable to a preliminary application and not from the
interpretation of the GDPR. Therefore, he said, the possibility of differing
interpretations or applications of EU law did not arise. He observed that this
court confirmed in Dowling v. Minister for Finance [2013] IESC 37, [2013] 4
IR 576 (“Dowling”) that the national law procedure in relation to the granting
of interim measures respects the principles of equivalence and effectiveness.
(vii) Mulcahy J. said that in this case, not only is there no challenge to an EU
measure, but a significant part of the challenge is advanced on what might be
regarded as purely domestic law grounds. He held that although the decisions
of the DPC are capable of having EU-wide effect, that effect is confined to the
decision concerned and, in substance, the affected parties. Mulcahy J. noted that
such a scope does not require that the procedural autonomy of the courts of a
Member State conferred with jurisdiction be displaced. He held that the decision
fell to be considered in accordance with the principles set out in Okunade.
(viii) As to the adequacy of damages/serious risk of irremediable damage limb of the
test in Okunade, Mulcahy J. was satisfied that TikTok had established to the
requisite standard that it would suffer significant loss if required to give effect
to the suspension order pending the hearing of its appeal. As to the question of
whether any loss which it would suffer would be financial, he stated that the
36
loss of institutional knowledge and expertise TikTok says it will suffer should
properly be regarded as a pecuniary loss since its impact is on the value of
TikTok’s business. He held that other purportedly non-pecuniary losses,
including damage to TikTok’s brand or its competitiveness must also be
regarded as financial or pecuniary. However, Mulcahy J. stated, the
classification of these losses as financial or pecuniary did not mean that
damages were an adequate remedy, or that the losses should not be regarded as
serious and irreparable. Mulcahy J. noted that the question arose as to whether
damages would be recoverable at all if TikTok incurred losses and ultimately
succeeds in its appeal. He stated that there must be a question over whether an
emanation of the State could rely on a statutory immunity (as is provided for in
s. 154 of the 2018 Act) to defeat a claim for Francovich damages. Accordingly,
he noted that this is a hurdle which any party would have to overcome if seeking
to recover damages in the event of a successful appeal. Mulcahy J. held that
given the scale of potential losses which may be suffered by TikTok, a
hypothetical remedy in damages is not an adequate remedy for TikTok in this
instance. He held that even if the applicable threshold were a risk of serious and
irremediable harm, on the evidence available that threshold would be met.
(ix) As to the least risk of injustice, Mulcahy J. stated that no injustice will have
been done to TikTok by reason of it having to implement the decision, and in
particular, the suspension order pending the determination of its appeal, if the
appeal ultimately fails. He held that all data controllers are required to comply
with the same rules; TikTok cannot be heard to complain if those rules have a
more significant impact on it than on its competitor because of the manner in
37
which its business is structured. Mulcahy J. held that the potential injustice
which must be weighed in the balance is that of being required to comply with
a decision which is subsequently proved invalid, which must be set against the
injustice which might result if TikTok avoided, or delayed, complying with a
decision the validity of which is upheld. He commented that in Okunade the
Supreme Court indicated that all appropriate weight should be given to the
importance that presumptively valid decisions be implemented. Mulcahy J. held
that that requirement is of particular significance where what is at issue is a risk
to fundamental rights. However, he held that the application cannot simply be
resolved by an invocation of such rights. He stated that were it the case that the
engagement of fundamental rights by a decision defeated any private interest
which might be asserted, this would negate the balancing exercise mandated by
national and Union law rendering a stay unavailable, undermining the potential
effectiveness of that remedy. Mulcahy J. held that there were a variety of factors
which point to the conclusion that the least risk of injustice would be served by
a limited stay on the suspension order, subject to certain conditions.
(x) As to the length of the stay which is required to avoid the most immediate risk
of injustice, Mulcahy J. noted that the decision provided a period of six months
before the suspension order comes into effect. He stated that as a consequence
of the temporary stay, which was granted when the proceedings were entered
into the Commercial List, that period would expire towards the end of March
2026 if he refused to continue the stay. He stated that TikTok will be required
to take steps in advance of the suspension order taking effect and therefore it
does not have the full benefit of the six-month implementation period before
38
needing to take potentially irreversible steps. Mulcahy J. held that a short further
delay in TikTok’s compliance with the orders pending the determination of these
proceedings does not greatly increase the risk that TikTok’s failure to comply
with Article 46 of the GDPR poses. He noted that the DPC has not concluded
that the personal data at issue is not subject to equivalent protection in China to
that which it would enjoy in the EU, rather that TikTok has failed to discharge
its obligations to establish that the personal data is subject to such protection.
The judge held that there is no finding that there is a current breach of Article
46. He held that a stay posed no risk to the orderly implementation of the GDPR
regime, nor to the implementation of the decision in due course. Mulcahy J.
stated that it was not clear whether TikTok’s users had been advised of the
DPC’s findings against TikTok, in particular, that it has not complied with
Article 46 in relation to the transfers. He held that any concern about the limited
short-term risk to TikTok users’ fundamental rights would be somewhat
ameliorated if their continued engagement with the platform was on a basis
where they were was informed as to the issues identified by the DPC.
63. Mulcahy J. granted the stay pending the determination of the substantive appeal. He did
so on the basis of an undertaking by TikTok to prosecute its appeal with all reasonable
diligence and, in any event, to ensure insofar as it is within TikTok’s power to do so,
that the appeal is heard not later than March 2026. He stated that TikTok was required
to notify, in a manner to be agreed, or in default as directed by the court, all of its users
of the DPC’s decision in clear and easily understood language.
Zuckerfabrik
39
64. The test posited by the Court of Justice in Zuckerfabrik falls to be understood against
the background of its earlier decision in Factortame. There, it was found that national
courts when applying community measures having direct effect must enjoy the power
to make interim orders protecting the rights thereby asserted against Member States.
The issue in Factortame arose in proceedings in which it was said that primary
legislation introduced in the United Kingdom imposing nationality requirements on the
ownership of fishing vessels was contrary to Community law. Interim relief was sought
before the English courts suspending the application of that legislation pending a
challenge in those courts to the validity of the measures. The Court of Justice answered
a referred question of whether it was permissible for national law to preclude interim
relief in these circumstances – as the law of the United Kingdom did – on the basis that
national rules which prevented, even temporarily, Community rules and judgments
from having full force and effect are incompatible with requirements of the full
effectiveness of Community law. Moreover, it held that it would impair the
effectiveness of the provision then governing the making of references to the Court of
Justice, Article 177 of the EEC Treaty (now Article 267 TFEU), if a national court
having stayed proceedings pending a reply by the Court of Justice to a referred question,
was not able to grant interim relief until it delivered its judgment following the response
of that court.
65. The Court of Justice did not answer a second question referred to it as to the criteria to
be applied in deciding whether or not to grant such relief. The Advocate General had
proposed that those criteria would be a matter for national law, subject to the national
law rules not rendering exercise of the rights impossible and to these being no less
40
favourable that those available in cases relating only to national law (para. 34; Advocate
General Tesauro). Before the Court of Justice, all parties appear to have accepted that
the test was governed by national law, the European Commission in fact urging that the
approach set out in American Cyanamid Co. v. Ethicon Ltd. [1975] AC 396 was
appropriate in the circumstances. That view commanded some support in the academic
commentaries at that time (see, in particular, Peter Oliver, ‘Interim Measures: Some
Recent Developments’ (1992) 29 Common Market Law Review 7, 12). It might be
thought that this was understood by all involved as following inevitably from the
principle of national procedural autonomy: the substantive issue in the case was
addressed to the validity of a national law, not of a community measure, and would be
decided by the national courts applying their own procedural law. There was every
reason to assume that the conditions attached to the grant of any suspensory relief would
also be a matter for the national courts applying their own rules of procedure.
66. While it might be said that Zuckerfabrik concerned the same general issue as did
Factortame – the power of national courts to grant interim relief the effect of which
was to suspend the implementation of measures that were said to conflict with EU law
– it did so in a fundamentally different context. In Zuckerfabrik, the underlying
challenge sought the annulment of both Council Regulation (EEC) 1914/87 and of a
national decision (“the decision”), imposing levies that implemented that Regulation.
The effect of the impugned provisions was to require payment by the applicant sugar
producers of significant sums intended to contribute to losses sustained by the
Community from sugar exports. The applicants brought an action before the national
courts seeking annulment of the decision, in support of which they contended that
Council Regulation (EEC) 1914/87 was invalid. They sought interim orders suspending
41
the obligation to make payments on foot of the decision until the Court of Justice had
ruled on the validity of Council Regulation (EEC) 1914/87 pursuant to the necessary
reference from the national courts to that end. One of the questions referred to the Court
of Justice was directed to whether a national court had the power to grant the interim
suspensory orders in question.
67. Whereas in Factortame the preclusion on the grant of interim measures derived from
national law (the common law of the United Kingdom not permitting orders suspending
the operation of primary legislation), in Zuckerfabrik the apparent obstruction to the
grant of this relief arose from EU law and, in particular, from the view that for national
courts to interfere with the implementation of Community law would be beyond their
competence having regard to the supremacy of Community law. That clog was easily
removed: the legal protection guaranteed by Community law, it was found, includes the
right of individuals to challenge the legality of Community regulations before national
courts and to request those courts to make a reference for a preliminary ruling. That
right would be compromised if individuals were not, pending the decision of the Court
of Justice on foot of that reference, in a position to obtain a decision granting suspension
of the enforcement of regulations thereby impugned (the national courts, of course,
themselves not having the power to rule that a Community act is invalid, Case 314/85
Foto-Frost v. Hauptzollamt Lübeck Ost (EU:C:1987:452 ). In that regard, the court,
referring to Factortame, said that the interim legal protection which Community law
ensures for individuals before national courts must remain the same irrespective of
whether they contest the compatibility of national legal provisions with Community
law, or the validity of secondary Community law, in view of the fact that the dispute in
both cases is based on Community law itself (para. 19-20). That statement, however,
42
was made in a context in which the validity of the national measure was entirely
dependent on the validity of the Community law, and in which the decision of the
national court as to the former would be dictated by that of the Court of Justice
regarding the latter.
68. Thus, it was the fact that Article 185 of the EEC Treaty (in the context of applications
for annulment) expressly enabled applicants to request the suspension of enforcement
of a contested act by the Court of Justice itself, that drove and determined scope of this
conclusion. Logically, if in such an annulment action the Court of Justice could order
interim suspension of an impugned measure, the national courts should be able to grant
similar relief where they referred the same question of validity to the Court of Justice.
As the court put it: ‘the coherence of the system of interim legal protection therefore
requires that national courts should also be able to order suspension of enforcement of
a national administrative measure based on a Community regulation, the legality of
which is contested’ (para. 18). Since the power thus deduced by the court corresponded
to that under Article 185, the conditions it imposed were those established and applied
by the court in deciding applications in proceedings brought pursuant to that provision.
Such uniform application, the court said, is a fundamental requirement of the
Community legal order. So, while the suspension of enforcement of administrative
measures based on a Community regulation was ‘governed by national procedural law,
in particular as regards the making and examination of the application’, the
‘conditions’ to which the application was subject must be ‘uniform so far as the
granting of such relief is concerned’ (para. 26). One of those conditions was that
suspension was necessary ‘in order to avoid serious and irreparable damage to’ the
party seeking the order (para. 28). Importantly, it was said, ‘purely financial damage
43
cannot, as the Court has held on numerous occasions, be regarded in principle as
irreparable’ (para. 29).
69. The conditions thus imposed by the court were conditions of Community law, and not
of national law. That corresponded not only with the theory on which the power was
based (that the right to challenge Community legislation in national courts and to
request a reference to the CJEU would be diminished if those courts were unable to
make such suspensory orders) but it reflected the fact that the national court was never
going to decide the issue of validity; its interim orders were not merely suspensory, but
preliminary to the decision of the Court of Justice itself on the underlying challenge to
the validity of the Regulation. The parasitic attack on the national measures was entirely
dependent on the success of the claim that the Regulation was invalid. That decision,
obviously, would be made by the European Court only by reference to EU law.
70. The criteria by reference to which such suspensory orders are made was developed in
the subsequent cases (see Case C-465/93 Atlanta Fruchthandelsgesellschaft mbH and
ors v. Bundesamt für Ernährung und Forstwirtschaft (EU:C:1995:369) and Joined
Cases C-453/03, C-11/04, C-12/04 and C-194/04 ABNA Ltd. and ors v. Secretary of
State for Health and ors (EU:C:2005:741)), propounding the factors to which I have
earlier referred – proof that there are serious doubts as to the validity of the measure in
question, that a stay is required as a matter of urgency in the sense that it is necessary
in order to avoid serious and irreversible damage to the party seeking the stay, and that
the urgency outweighs the interests arising. Moreover, and as the DPC points out in its
submissions, the law is now that pecuniary damage will generally be considered serious
and irreparable only where the applicant can establish that absent a stay it would find
44
itself in a situation likely to jeopardise its financial viability, or its market share would
be significantly altered and there would be structural or legal obstacles preventing it
from regaining that share (Case T-139/24 R Webgroup Czech Republic v. Commission
(EU:T:2024:475) at paras. 77-81, upheld in C-620/24 P(R) WebGroup Czech Republic
v. Commission (EU:C:2025:136) at para. 19).
71. The CJEU case law suggests that at least part of the reason that financial losses will not
constitute an irreparable damage is that they can be recovered in an action for damages
under the theory recognised by the Court of Justice in Joined Cases C-6/90 and C-9/90
Andrea Francovich and Danila Bonifaci and ors. v. Italian Republic (EU:C:1991:428)
(“Francovich”). However, this means that a person who might have a theoretical claim
to damages under Francovich if the challenged decision is declared invalid, may well
never obtain such damages, with the result that their application for interim relief has
been refused on an assumption that has not materialised. The consequence is, as Collins
J. put it in Three (at para. 87):
‘…financial loss might be regarded as reparable even though the prospect of
actually recovering monetary compensation was limited by reason of the
restrictive rules governing the non-contractual liability of the Union and its
institutions (rules which, as mentioned, apply also to the non-contractual
liability of Member States under Francovich).’
72. The ‘restrictive rules’ to which reference is made here derive from Joined Cases C-
46/93 and C-48/93 Brasserie du Pêcheur SA v. Germany and R v. Secretary of State for
Transport, ex parte: Factortame Ltd. and ors (EU:C:1996:79) (“Brasserie du
Pêcheur”). There it was explained that the right to recover financial loss consequent
45
upon breach of provisions of EU law depended not merely upon the rule of law
infringed being intended to confer rights on individuals, and that loss causation be
established, but also that ‘the breach must be sufficiently serious’ (para. 51). That latter
requirement meant that the Member State ‘manifestly and gravely disregarded the
limits on its discretion’ (para. 55), that in turn enabling a consideration of the following
factors (para. 56):
‘the clarity and precision of the rule breached, the measure of discretion left by
that rule to the national or Community authorities, whether the infringement
and the damage caused was intentional or involuntary, whether any error or
law was excusable or inexcusable, the fact that the position taken by a
Community institution may have contributed towards the omission and the
adoption or retention of national measures or practices contrary to Community
law.’
73. In the course of his opinion in Francovich, the Advocate General (Mischo) observed
the combined effect of Factortame and Zuckerfabrik as being that Community law
could directly confer on national judicial authorities the power to ensure effective
protection of rights and could lay down conditions governing the exercise of the
jurisdiction which it thus conferred on national courts (para. 55). He also said that it
was ‘not to be excluded’ that the conditions for the grant of the suspension of the
operation of a national administrative measure set out in Zuckerfabrik might also
govern the suspension of the operation of a national statute which was contrary to
Community law (id.).
46
74. That this was not so was made clear in Unibet. There, a series of questions were referred
by a Swedish court in proceedings brought by claimants seeking to challenge the
compatibility with EU law of provisions of national legislation prohibiting the
advertising by foreign gaming companies of their services. One of the questions was
directed specifically to whether in such a case, an application for interim relief was
governed by national law, or whether the national court must apply the criteria outlined
in Community law for interim protection. Both the Advocate General (Sharpston) and
the court concluded that, provided the remedies met tests of effectiveness and
equivalence, the criteria governing their grant were fixed by national and not
Community law.
75. In reaching that conclusion each started from the premise that it is for the domestic legal
systems to lay down the detailed procedural rules governing actions for safeguarding
Community law rights subject to principles of effectiveness and equivalence. From
there, the opinion and judgment variously observed (a) that the case was concerned
with a national law measure, (b) by definition it applied in only one Member State, (c)
that it was more logical for the procedure governing interim suspension of a national
law on grounds of alleged incompatibility with Community law to be the same as that
governing interim suspension of a national law on other purely domestic grounds, (d)
that the rationale of Zuckerfabrik (that there was a Community interest in having
uniform criteria governing interim orders where only the CJEU has jurisdiction to
declare the measure invalid) was inapplicable where the underlying challenge was to a
measure of national law (the foregoing all appear in the opinion of the Advocate
General at paras. 91-94) and (e) that where the issue in the underlying proceedings was:
47
‘…the effects of national legislation where the compatibility of that legislation
with Community law is contested … in the absence of Community rules
governing the matter, it is for the domestic legal system of each Member State
to determine the conditions under which interim relief is to be granted for
safeguarding an individual’s rights under Community law’
(judgment of the court paras. 79 and 80).
76. In Dowling (where the court confirmed that the Okunade test satisfies the requirements
of equivalence and effectiveness), this court fixed the test derived from Zuckerfabrik as
operating where there is a challenge to the validity of an EU act. It observed of the
decision in Unibet (at para. 86):
‘where there is a challenge to a national measure, national procedural rules
are to apply subject to the principles of equivalence and effectiveness. It follows
that it is possible that different results might arise in different member states, in
the event of a challenge to similar national measures, because of the
applicability of different procedural regimes, provided always that each such
regime must provide an effective remedy.’
Which test?
77. The argument advanced by the DPC – urged forcefully and at points ingeniously by
Ms. Smith SC and Ms. Donnelly SC – revolved around what they presented as the sui
generis and unique nature of the DPC decision in issue. In that regard, the argument
focussed on the ‘one-stop shop’ put in place by the GDPR. The DPC emphasised that
48
the effect of Article 60 GDPR is that the lead supervisory authority cannot reach a
decision of the kind in issue here without the agreement of all ‘supervisory authorities
concerned’ (that is authorities in states in which data subjects who are substantially
affected or likely to be so affected by the processing reside (Article 4(22) of the
GDPR)). Where a draft decision is submitted to the supervisory authorities concerned
(as is required) and where a reasoned objection is communicated by such a supervisory
authority, the lead supervisory authority must submit the decision to a consistency
mechanism provided for in Articles 63-65 of the GDPR. That mechanism, broadly,
involves the formation by the EDPB of an opinion which, if not accepted by the lead
supervisory authority, will be followed by a decision of the EDPB which shall be
binding on the lead supervisory authority and the other supervisory authorities. The
lead supervisory authority must, under Article 65(6) then adopt its final decision ‘on
the basis of’ the decision of the EDPB. Thus, if that process had been exhausted in the
inquiry undertaken by the DPC into TikTok and the decision questioned by a
supervisory authority concerned, the ultimate decision would – although legally that of
the DPC – comprise a decision in substance made by the EDPB.
78. Recital 143 expressly provides that:
‘where a decision of a supervisory authority implementing a decision of the
Board is challenged before a national court and the validity of the decision of
the Board is in issue, that national court does not have the power to declare the
Board’s decision invalid but must refer the question of validity to the Court of
Justice …’.
49
79. The DPC says that that decision, thus, could only be annulled by the CJEU, could only
be suspended in accordance with Zuckerfabrik, and, it followed, the same legal theory
should apply to all such decisions of the DPC. There would, the DPC argues, be a
‘fundamental illogicality’ if one test governed the suspension of a decision where there
had been disagreement between the supervisory authorities concerned, but another
where there had not. Indeed, it was observed in submissions, it was in theory possible
that a decision of a lead supervisory authority could be challenged on grounds that could
only be adjudicated upon by the CJEU, but also on other grounds that were not
dependant on the EDPB decision. That, it was suggested, demanded that the same test
for the grant of an interim stay be applied across the board.
80. If, in contrast, the decision is not the subject of a reasoned objection, Article 60(6)
provides that the supervisory authorities concerned are ‘deemed to be in agreement with
that draft decision and shall be bound by it’. Although normally the lead supervisory
authority is responsible for adopting and notifying the controller or processor of the
decision (Article 60(7)), Article 60(8) provides that where a complaint is rejected, the
supervisory authority where the complaint was lodged, instead of the lead supervisory
authority, is responsible for adopting the decision and notifying the complainant.
Article 60(9) provides that where a complaint is upheld in part and rejected in part, the
lead supervisory authority is responsible for adopting the portion of the decision
wherein the complaint is partially upheld and notifying it to the controller, while the
supervisory authority where the complaint was made is responsible for adopting the
portion of the decision wherein the complaint is partially rejected and notifying it to the
complainant. This, the DPC explains, is for the purpose of determining the Member
State within which the decision can be challenged. In this way, it urges, the consistency
50
and co-operation mechanism ensures that all decisions of supervisory authorities
involving cross-border processing are made either jointly with the consensus of all
supervisory authorities concerned under Article 60, or are made pursuant to a binding
decision of the EDPB, an EU body, under Article 65. All such decisions are binding
throughout the EU/EEA.
81. The DPC framed these provisions as part of a broader context whereby the object of
the GDPR is to obtain a consistent, equivalent and high level of protection of personal
data across all Member States, arguing that this demanded that the approaches adopted
by different supervisory authorities are not fragmented, and are homogenous. All of
this, it contended, dictated that the conditions attaching to the making of interim orders
the effect of which would be to suspend a decision of a lead supervisory authority had
to be uniform and thus governed by EU law. Moreover, it said, decisions of a lead
supervisory authority of the kind in issue here necessarily affected data subjects
throughout the EU/EEA, thereby demanding a single rule of law governing the making
of such interim suspensory orders. Thus, it contended, the position was closer to
Zuckerfabrik than to Unibet, in the latter of which the Advocate General had
emphasised that it was appropriate that interim orders be governed by national
procedural law because they applied in only one Member State.
82. The various facets of this sophisticated argument break down when attention is paid in
the first instance not to the legal regime governing the grant or withholding of interim
measures, but to (a) the law that ultimately determines whether the decision challenged
is valid or invalid, (b) the location of the power to hear and decide that challenge, and
(c) the fact that only one national court can entertain challenges to a decision of a
51
supervisory authority. It follows from the third of these, in particular, that only one
national court can stay that decision, so the risk of inconsistent decisions across the
network of national courts that featured in Zuckerfabrik, does not arise. Each of these
three features of the legal context should, moreover, be viewed in the light of the fact
that notwithstanding the need for agreement with other supervisory authorities,
decisions of the lead supervisory authority such as that in issue here, are those of that
authority alone, and this remains the situation even where the EDPB has issued a
decision (Case C-97/23 P WhatsApp Ireland v. European Data Protection Board
(EU:C:2026:81)).
83. Article 78 of the GDPR provides that each natural or legal person shall have the right
to an effective judicial remedy against a legally binding decision of a supervisory
authority concerning them. It states that proceedings against a supervisory authority
shall be brought before the courts of the Member State where that authority is
established. This means – and there was no dispute about this – that it is Irish law that
will determine not merely the substantive law by reference to which the legality of the
decision is determined, but also the standard of review, the admissibility of evidence
on review, the procedures governing that review, and the threshold for judicial
intervention. This point was specifically debated by members of the court with counsel
for the DPC in the course of the hearing: when the court at the end of the day decides
to allow the statutory appeal, or to disallow it, it does so on the basis, counsel said, of
Irish law, not European law. Of course, some challenges will be based on the principles
of EU data protection in general, and the provisions of the GDPR in particular, but this
is not the only basis on which a decision of the DPC could be found invalid. As this
case shows, it is to be expected that some challenges will raise issues of procedural
52
fairness, and the exact parameters of those principles will be products of national law.
In a similar vein, counsel urged that even if a ground of appeal was solely and
exclusively based on national law, the Zuckerfabrik test would continue to apply, yet in
that very situation Francovich damages would not lie.
84. All of this exposes an incoherence in the legal framework as it is viewed by the DPC –
that a court would apply a test which, as Zuckerfabrik shows, is one of EU law, to
determine the incidental question of whether a decision should be suspended, but an
Irish law test to the fundamental and substantive question of whether the challenged
decision is actually valid. It also reveals that the GDPR enabled a far more fundamental
fragmentation of the decision-making process than will follow from the application of
national law to the question of an interim suspension. To take one example instanced
in the DPC’s submissions, where data controllers with their main establishments in
different Member States infringe the GDPR in the same manner, not only might one
obtain a stay, while the other might not, but one may secure a determination of
invalidity by reference to legal or procedural rules that are not applicable to the other.
It would also mean that in a case in which the ground of challenge was only one of
national law, the court would be applying that EU law test to determine if there should
be suspension, the test incorporating a consideration of the merits of the case, but those
merits being determined not by EU law, but by domestic law. The test would function
on the basis that financial losses alone would not suffice to ground a stay because of
the availability of Francovich damages, yet in that situation Francovich damages would
not – on the DPC’s account of the law – be available at all. This is far removed from
the position in Zuckerfabrik where the entire basis for the challenge to the national law
measure was predicated on the challenge to the validity of the underlying Regulation,
53
that challenge being one determined by the Court of Justice by reference to its
procedural law, and exclusively by reference to EU law.
85. Some discordance, as it were, is a necessary consequence of the failure to harmonise
the rules governing substantive legality and, indeed, this was expressly recognised by
this court in Dowling (at para. 86, which I have earlier quoted). The real question is
where the discordance should lie, and how it can be minimised. What the DPC contends
for is the deduction from the GDPR of partial – and selective – harmonisation of the
rules governing interim suspension pending an adjudication as to validity, where there
has been no comprehensive harmonisation of the rules that actually govern legality.
That is both illogical and unprincipled. There has never been a case in which it has been
remotely suggested that EU law dictates the terms of an interim suspension of a
challenged decision where EU law does not itself exclusively determine the basis on
which the decision can be challenged, let alone a case in which the issue of validity
would in actuality be decided not by the CJEU, but by the national court. The effective
qualification of national procedural autonomy demanded by the decision in
Zuckerfabrik was the product of the need to align the jurisdiction of national courts to
receive a challenge to the validity of an EU measure, with the legal framework within
which such a measure could be annulled by the CJEU itself. The context was one in
which, as I have earlier observed, the challenge to the national measure was entirely
parasitic upon the CJEU’s decision as to the validity of the EU measure. It followed
logically that the conditions for suspension of each must be the same. That rationale is
of no application to the challenge the subject of these proceedings, which will be
decided by national courts quite independently of the outcome of any proceeding before
the CJEU.
54
86. In fact, far from authorising that partial harmonisation, the GDPR proposes the
opposite. Noting – as counsel for the DPC acknowledged in the course of submissions
– that national procedural autonomy is the ‘default position’, Recital 143 provides that:
‘[p]roceedings against a supervisory authority should be brought before the
courts of the Member State where the supervisory authority is established and
should be conducted in accordance with that Member State’s procedural law.
Those courts should exercise full jurisdiction, which should include jurisdiction
to examine all questions of fact and law relevant to the dispute before them’.
87. That unqualified assertion of national procedural autonomy does not – as the DPC
stresses – appear in the text of the GDPR, but it affords a strong indication of legislative
intent and an affirmation of what follows from what the Advocate General in Unibet –
hardly controversially – described as ‘the general rule’. That she made that comment
when considering the test to be applied to interim suspensory measures demonstrates
that these are indeed matters of procedural and not substantive law, that prima facie fall
within the purview of national law (subject of course to requirements of equivalence
and effectiveness). When viewed in that way, it is difficult to accept the argument
suggested by the DPC that the reference to national procedural law incorporated tests
developed by the CJEU and imposed by reason of the requirements of EU law. National
procedural autonomy arises precisely because there are no EU rules governing a matter,
and thus demands that the Member States ‘lay down the detailed rules of administrative
and judicial procedures designed to ensure a high level of protection of rights which
individuals derive from EU law’ including ‘how the remedies provided for by
55
Regulation 2016/679 must be implemented…’ (Case C-132/21 BE v. Nemzeti
Adatvédelmi és Információszabadság Hatóság (EU:C:2023:2) (“BE”) at paras. 45 and
46).
88. Indeed, the CJEU has consistently referenced the interpretation of Article 78 of the
GDPR to the provisions of Recital 143 (see BE at para. 41 and Joined Cases C-26/22
and C-64/22 UF and AB v. Land Hessen (EU:C:2023:958) at para. 52). From that, one
might generally expect some express deviation from the apparent terms of Recital 143,
had such a deviation been intended, not least of all in a context in which the departure
from the application of national law contended for is partial rather than complete. At
issue in this case is – as in Unibet and Factortame – a national measure the legality of
which will be judged by the standards applied by national law to all such decisions. It
would be surprising in those circumstances were EU law to prescribe the mechanisms
that will protect the effectiveness of any remedy ultimately granted (subject of course
to the national rules complying with principles of effectiveness and equivalence), and
astonishing if the displacement of those rules were to occur implicitly and without any
indication of a legislative intent to do so. For those reasons, the contention of the DPC
that the appropriate test to be applied to this application is that derived from
Zuckerfabrik must be rejected.
The request for a reference to the CJEU
89. The DPC has requested, in the event that the court disagrees with the position it urges
as to the applicability of the Zuckerfabrik test to this application, that we make a
reference to the CJEU as to that issue. The DPC urges – and in this respect I think it
56
correct – that the disapplication of the obligation on a final instance national court to
make a reference in interlocutory matters as suggested in Case C-107/76 Hoffmann-La
Roche AG v. Centrafarm Vertriebsgesellschaft Pharmazeutischer Erzeugnisse mbH
(EU:C:1977:89) (at paras. 5-6) operates only where the issue provisionally decided in
the interlocutory proceedings may be re-examined in the substantive proceedings and
may be subject to a reference to the CJEU at that point. Nonetheless, I agree with Hogan
J.’s explanation in his judgment of the difficulties that arise when seeking to apply the
third paragraph of Article 267 to decisions such as that in issue here, given the
disinclination of the CJEU to address a matter that is no longer live and/or has been
overtaken by events. It is, I think, for this combination of reasons that the texts
recognise the reality that references are but rarely made in applications for interim
injunctions (see Schermers and Waelbroeck at §542). To that extent, and for the reasons
outlined by Hogan J., a reference should not be made.
90. That said, for my part I do not believe that this is a case which meets the conditions for
an obligatory reference as postulated in the case law of the CJEU. The substantive
argument advanced by the DPC runs directly contrary to the decision of the court in
Unibet. There is no decision of the CJEU subsequent to Unibet that comes close to
suggesting the decision in Unibet should be limited in the manner necessary to sustain
the DPC’s argument – that is restricted in its scope to measures that may have an effect
only in the Member State in which the relief is sought. Any such test would be hard to
formulate with any useful precision, and the reference in Unibet to this consideration
must be understood as descriptive of the case before the court, and not prescriptive of
any test.
57
91. The decision in Zuckerfabrik was addressed to the grant of interim suspensory relief
pending the determination by the CJEU of a challenge to the validity of an underlying
EU act. It is only where an applicant seeks to stay a national measure implementing
such an EU act pending such a challenge, that the test outlined in Zuckerfabrik is
engaged. The rationale for the decision does not extend to a measure promulgated by a
national authority, the validity of which is tested before a national court, and the legality
of which may be decided in accordance with national law. It would be counterintuitive
and illogical to render the grant of interim relief pending the outcome of a legal
proceeding subject to a rule of EU law derived from the decision in Zuckerfabrik, when
the legal proceeding itself will be determined in accordance with national law. Far from
the GDPR suggesting any basis on which such a principle could be adopted by national
courts, its terms are consistent only with the contrary. That the material provided by the
parties (while noting the reservations of the DPC on some aspects thereof) suggests that
this is the view seemingly adopted in all other jurisdictions to have addressed this or
similar issues only reinforces the conclusion that this case comes within the
construction of the third paragraph of Article 267 TFEU posited by the court in Case
C-561/19 Consorzio Italian Management and anor. v. Rete Ferroviaria Italiana SpA
(EU:C:2021:799) (at para. 33): the issue is the subject of a decision of the CJEU
(Unibet), and the correct interpretation of EU law is ‘so obvious as to leave no scope
for any reasonable doubt’.
92. Finally – and in this regard also I agree with the judgment of Hogan J. – if the approach
to the grant of interim stays to decisions of bodies such as the DPC I suggest later in
this judgment is properly applied, the differences between the test applied by national
58
law and that proposed in Zuckerfabrik are not necessarily substantial. In and of itself,
this is a basis for refusing to refer.
Okunade
93. The significance of the decision in Okunade lay in the fact that, for the first time, the
court sought to take account in structured way of the particular features of suspensory
orders made in the course of legal challenges to the validity of administrative decisions.
I have outlined earlier the approach formulated by the court to that end. In this appeal,
however, the question of how that methodology falls to be applied arises in a very
particular context. Unlike some administrative decisions – including that in issue in
Okunade itself – the application in issue here arises from a decision that does not just
directly affect one person or a small number of persons. It impacts TikTok, obviously,
but also potentially affects the interests of many users of its services, whose
fundamental rights in the protection of their personal data may be impacted by the
decision of the DPC and, in consequence, the suspension of that decision. It is a decision
which, as Hogan J. observes in the course of his judgment, is akin to a legislative
measure of general application.
94. In Pesca Valentia Ltd. v. Minister for Fisheries and Forestry [1985] IR 193 this court
rejected the argument advanced by the defendants in that case that where an
interlocutory injunction was sought restraining the enforcement of conditions attached
to a fishing licence granted pursuant to a statutory provision that expressly allowed the
imposition of such conditions, a special principle should be applied to reflect the fact
that the effect of the injunction would be to suspend the exercise by the Minister of a
59
power expressly granted to him by law (see the judgment of Finlay CJ, with whom
Walsh, Griffin, Hederman and McCarthy JJ. agreed, at p. 201). Insofar as that case
suggests that the court should approach the making of orders suspending the operation
of acts of this kind by simply applying the test previously understood as following from
Campus Oil v. Minister for Industry (No.2) [1983] IR 88 (“Campus Oil”) (that is by
inquiring into whether the plaintiff has established a fair question to be tried, whether
damages would be an adequate remedy for the plaintiff if the injunction is not granted
and they succeed in their claim, and whether the balance of convenience favours the
grant or refusal of such relief) it should no longer be viewed as good law. Even on its
own terms, the decision in Pesca Valentia sits in the teeth of a number of earlier
decisions in which similar injunctive relief was emphatically refused, and in particular
with the importance attached by the court in Campus Oil itself to the presumptive
validity of a ministerial order made pursuant to statute (see the judgment of O’Higgins
CJ in Campus Oil at p. 107 and James P. Casey ‘Constitutional Law – Enjoining the
Enforcement of Statutes’ (1985) 7 DULJ 123). In point of fact, not long after Pesca
Valentia was decided, in Cooke v. Minister for Communications (Irish Times Law
Report, 20 February 1989) the court refused an application for an interlocutory
injunction restraining the enforcement of provisions of the Radio and Television Act
1988 pending a challenge to the constitutional validity of certain provisions of that
legislation: an injunction, it was said, could not be granted if it had the effect of
permitting illegal activity (although similar orders suspending the enforcement of the
Wireless Telegraphy Acts against the plaintiffs were made by the High Court in
Carrigaline Community Television v. Minister for Transport [1994] 2 IR 359, being
subsequently upheld in this court). The actual decision in Pesca Valentia, it might also
be observed, was unusual : the court seemed to suggest that if the challenge ultimately
60
failed, the plaintiffs could be prosecuted for breach of the licence conditions during the
pendency of the stay – a conclusion that might be thought inconsistent with the grant
of the injunctive relief sought.
95. More fundamentally, the court in Merck Sharp & Dohme Corporation v. Clonmel
Healthcare Ltd [2019] IESC 65, [2020] 2 IR 1 (“Merck”), has reframed the decision in
Campus Oil. The court has thereby made it clear that Campus Oil should not be
understood as positing a single test for the grant of an interlocutory injunction in all
cases. Instead, it will on occasion require substantial qualification and exception. Thus,
it was that the test derived from that case was explained as resolving many applications
for interlocutory injunctions and as a valuable guide to the analysis of any application,
but not as prescribing ‘strict mechanical rules for the control of future cases’
(O’Donnell J. (as he then was) in Merck at para. 34). Reflecting the rationale of
Okunade, O’Donnell J. stated that the underlying theme of the decision in American
Cyanamid was in its assertion of the flexibility of the remedy and the essential function
of an interlocutory injunction in ‘finding a just solution pending the hearing of the
action’ (para. 34).
96. When applied to the suspension of legal provisions or administrative decisions of the
kind in issue in this case, that analysis demands the consideration of three particular but
related factors. First, in cases of this kind, the availability of damages or compensation
simply cannot discharge the decisive function it does in private law proceedings.
Usually, in domestic law absent proof of a reckless or knowing excess of power,
damages will not be available for losses caused by an invalid administrative decision.
As I have explained, Francovich damages, where they arise, are also subject to quite
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particular restrictions which will often function to prevent the award of damages for
losses caused by bona fide decisions made by statutory bodies when exercising
discretionary powers. Conversely, the interests sought to be protected by a respondent
in such proceedings may not be reducible to damages capable of recovery on foot of an
undertaking and, if they are, any financial loss arising from the failure to implement
such a decision will often have been suffered not by the public body defending the
proceedings, but by third parties. Therefore, in the vast majority of applications for
stays or injunctions to arrest the operation of legislation or decisions of administrative
agencies in the exercise of their statutory powers, any debate about whether loss or
damage is or is not capable of calculation is futile. At the very least, in this regard, the
focus of such applications must be quite different from that in a private law action.
97. Second, decisions of the kind in issue here attract in law a presumption of legal validity,
to which a court must insofar as possible, give effect. There is, it has been frequently
emphasised, a corresponding public interest in the law – including administrative
decisions made pursuant to law – being enforced. Moreover, and unlike most cases in
which an injunction is sought in a purely private law context, the suspension of a
legislative measure or administrative decision will often affect the rights of third parties
who are not before the court. These are factors to which the court must attach
‘significant weight’ when determining whether to grant relief suspending the operation
of such a measure, not least of all because such measures when presumed valid,
represent the status quo ante (Okunade at para. 92; Merck at para. 62; Krikke and ors.
v. Barranafaddock Sustainability Electricity Ltd. [2020] IESC 42 (“Krikke”) (at para.
10)).
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98. Third, the trial judge in this case (at para. 184 of his judgment) recorded the parties as
agreeing ‘that the court should not ordinarily consider the merits of the underlying
proceedings’. In fact, the more recent case law has quite clearly veered away from the
absolutist position reflected in some of the decisions applying American Cyanamid and
Campus Oil that the merits of a case are relevant to the grant or refusal of interlocutory
relief only to the extent that the court must be satisfied that the claimant has established
an arguable case or a ‘fair issue to be tried’. The law has now moved to a point at which
the merits are always relevant, and in which there will be cases in which the strength of
the claimant’s underlying action may be dispositive. This was explained most
emphatically by O’Donnell J. in Merck, where he said (at para. 62):
‘In cases where the balance of convenience may be finely balanced, it may be
appropriate to have regard, even on a preliminary basis, to the strength of the
rival arguments as they may appear to the court. Certainly, if it was apparent
that Clonmel’s case for invalidity was strong … then that might weigh against
the grant of an injunction … Courts are correctly reluctant to express views on
cases which are to come to trial. However, it would be absurd if this rule of
abstention were to result in a court conducting an agonised and necessarily
imperfect assessment of a number of variable factors in a field with which it has
little familiarity and where the evidence is indirect, written and untested, all the
while averting its attention from the area (perhaps of pure law) in which it can
justifiably claim expertise’.
99. This echoes comments of Laddie J. in Series 5 Software Ltd. v. Clarke and ors. [1996]
1 All ER 853, 865:
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‘…the court should not attempt to resolve difficult issues of fact or law on an
application for interlocutory relief. If, on the other hand, the court is able to
come to a view as to the strength of the parties’ case on the credible evidence,
then it can do so … To suggest otherwise would be to exclude from
consideration an important factor and such exclusion would fly in the face of
the flexibility advocated earlier in American Cyanamid.’
100. The limitation envisaged here is important: the court must strike a balance between
affording due weight to the strength of a legal claim that can be clearly identified and
confidently addressed in an interlocutory application, and enmeshing a court at an
interlocutory hearing in either an undergrowth of untested and incomplete evidence, or
in legal issues of novelty or complexity that are ill-suited to summary disposition. Thus,
in Okunade, Clarke J, concluded that the court can, in determining whether to make
such orders ‘have regard to the strength of the case at least where, as will frequently
be the case, the challenge does not involve issues of fact as such or the sort of complex
questions of law which … “call for detailed argument and mature considerations”’ (at
para. 98, citing Lord Diplock in American Cyanamid). Most recently, in HA O’Neil
Ltd v. Unite the Union and ors. [2024] IESC 8, O’Donnell CJ (at para. 73) put the
position as follows in the context of an application for an injunction to restrain certain
actions undertaken in the course of a trade dispute:
‘That conclusion is if anything reinforced by any assessment of the relative
strengths of the parties' cases. This is a particularly appropriate course where
the balance is otherwise equal and where indeed the possibility of
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uncompensatable loss is difficult to assess and where, as here, the issue is one
of solely legal analysis which is not dependent on any issue of fact, which may
require the assessment of oral evidence. Courts should always be wary about
over-confident predictions of the likely outcome of cases which have yet to be
argued fully, and there are many cases which were assessed as weak or even
unstateable, and which later triumphed. However, faced with the choice
between attempting on the one hand, an assessment of the likely course of events
in fact, and assessment of damage that is largely speculative if an injunction is
or is not granted in a field of activity in which a court may not have any
particular expertise, and on the other hand, an assessment of the strength of the
respective legal arguments by an experienced judge, it may be preferable to
allow the matter to be decided on an assessment of something in which the court
is an expert rather than an amateur.’
The relevance of the merits of the case to the grant of a stay
101. The very nature of public law challenges is that there will often be greater scope for
the identification of clear issues of law that can be thus factored into the balance than
in many applications for injunctions in private law actions (Okunade at para. 95).
Moreover, the consequence of the presumption of validity is that the case for requiring
more than merely an arguable case before the due operation of legal measures is
suspended will often be overwhelming: ‘[a]n individual ought not be permitted to
obtain from a court an order disapplying the law … merely by asserting a stateable,
though perhaps weak, case and a fear of substantial damage’ (per O’Donnell J. in
Krikke at para. 11).
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102. It is therefore not surprising that in the United Kingdom there are cases in which the
criteria for the grant of a stay in at least certain judicial review proceedings have been
framed by reference to a requirement that a claimant establish ‘a strong prima facie
case’ on the merits (R(H) v. Ashworth Hospital Authority [2002] EWCA Civ. 923,
[2003] 1 WLR 127 at para. 93 (per Mummery LJ)). More recently, the Court of Appeal
of England and Wales has noted that there is support at first instance for the proposition
that in a public law claim the court will generally be reluctant to grant interim relief in
the absence of a ‘strong prima facie case’ to justify the granting of an interim injunction
(see, for example, the judgment of Warby J. in R. (on the application of Easybus Ltd.)
v. Stansted Airport Ltd. [2015] EWHC 3833 (Admin), at paragraph 95; and the
judgment of Farbey J. in R. (on the application of Remus White Ltd., t/a Heathside
Preparatory School) v. Ofsted [2018] EWHC 3324 (Admin), at paragraph 21).
However, it was observed by Lindblom LJ in R(X) v. Office for Standards in Education,
Children’s Services and Skills & Anor [2020] EWCA Civ 594 (at para. 66):
‘[t]his is not to say that the relevant case law at first instance supports the
concept of a “strong prima facie case” being deployed as a “threshold” or
“gateway” test in such cases, but rather that the underlying strength of the
substantive challenge is likely to be a significant factor in the balance of
considerations weighing for or against the granting of an injunction’.
103. Today, the position in that jurisdiction is that while a ‘strong prima facie case’ is not
an absolutely essential element in all successful applications for interim relief of this
kind, if a claim does not disclose a ‘strong prima facie case’ that will weigh against the
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grant of an injunction (R. (on the application of RRR Manufacturing Pty Ltd.) v. British
Standards Institution [2024] EWCA Civ 530 at para. 96). The rationale for that position
reflects what I said earlier, and indeed derives from the decision of the House of Lords
in R. v. Secretary of State for Transport, ex p. Factortame (No. 2) [1991] 1 AC 603
(“Factortame”) where the imposition of a general (but not invariable) strong prima
facie case requirement for orders arresting the operation of legislation was rooted by
the majority (Lord Goff) in the balance of convenience, while being identified by Lord
Jauncey as a threshold requirement. They were justified by all members of the court on
the basis of the strong public interest in the enforcement of the law (‘particular stress
should be placed upon the importance of upholding the law of the land, in the public
interest, bearing in mind the need for stability in our society, and the duty placed upon
certain authorities to enforce the law in the public interest’ per Lord Goff at p. 673).
104. While both Okunade and Merck envisage the strength (in addition to the stateability)
of a challenge being potentially relevant to the decision whether to grant interlocutory
injunctive relief, in no case has this court previously required that injunctive relief in
public law challenges be usually refused where the applicant cannot establish a strong
case on the merits. However, the case for imposing such a requirement in the case of
applications to suspend the operation of at least some administrative decisions, and of
provisions of law, is coercive. Orders of this kind function to displace the status quo
ante. Where, as here, the Oireachtas has established a body for the purposes of
formulating and enforcing rules intended to ensure protection of the rights and interests
of users of services in particular contexts, or (as is often the case with regulatory bodies)
in specific sectors of the economy, courts must be very slow to arrest those decisions,
particularly where (as in this case) the Oireachtas has established a right of statutory
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appeal against the regulator’s decision, but has not provided for an automatic stay
thereon where that appeal is invoked. The same can be said of those agencies charged
with ensuring fair competition, adherence to technical standards, the protection of
vulnerable cohorts of the public and/or the protection or promotion of general consumer
welfare. In cases in which the regulated entity will, more often than not, not be in a
position to recover damages where it implements a decision that is subsequently
overturned on appeal or determined to be unlawful, the strength of the case advanced
by the appellant or applicant must be of critical importance in the calculation to be
undertaken by a court: the stronger that case appears, the more pressing the exigency
of justice that demands that the claimant’s interests are protected pending a full trial.
105. This was convincingly explained by Lord Bridge in the course of his judgment in
Factortame (at p.659-660):
‘If, in the end, the claimant succeeds in a case where interim relief has been
refused, he will have suffered an injustice. If, in the end, he fails in a case where
interim relief has been granted, injustice will have been done to the other party.
The objective which underlies the principles by which the discretion is to be
guided must always be to ensure that the court shall choose the course which,
in all the circumstances, appears to offer the best prospect that eventual
injustice will be avoided or minimised…
… On the other hand, if they failed after a grant of interim relief, there would
have been a substantial detriment to the public interest resulting from the
diversion of a very significant part of the British quota of controlled stocks of
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fish from those who ought in law to enjoy it to others having no right to it. In
either case, if the final decision did not accord with the interim decision, there
would have been an undoubted injustice. But the injustices are so different in
kind that I find it very difficult to weigh the one against the other.
… In the circumstances I believe that the most logical course in seeking a
decision least likely to occasion injustice is to make the best prediction we can
of the final outcome and to give to that prediction decisive weight in resolving
the interlocutory issue.’
106. Conversely, the statements from Krikke I have earlier quoted make clear that it is not
acceptable that the law – and this includes decisions of statutory agencies made in
accordance with statute – be suspended on the basis of weak but stateable cases, and
allegations of very substantial damage if that law or those decisions are implemented.
Once again, this assumes particular importance in the context of decisions of a
regulatory agency of the kind in issue here. Many decisions of the kind the subject of
this appeal are the end point of lengthy inquiries, consultation papers, draft decisions
and extensive interaction between the regulator and the undertaking concerned. When
matched against the highly diluted nature of the threshold arising from a requirement
of stateability, it will not be difficult in very many cases to construct an arguable basis
for judicial review or an appeal. At the same time – as the CJEU has stressed in its
subsequent case law considering the Zuckerfabrik test – interim stays can potentially
operate to delay for several years the full achievement of the legislator’s objectives and,
as this case shows, have the potential to significantly impact the fundamental rights of
many European citizens (Case C-639/23 P(R) European Commission v. Amazon
69
Services Europe Sàrl (EU:C:2024:277) at para. 157). Stays, as the DPC puts it, can
impede and even frustrate regulatory objectives. It is not satisfactory that the process of
implementing the law can be arrested on such a thin – and often too easily constructed
– basis.
107. While that conclusion can be easily rationalised, defining a threshold that requires an
applicant or appellant to establish something more than mere arguability is more
challenging. A consideration of the judicial statements in the preceding section of this
judgment shows that this requires not merely putting words on a test that can be readily
understood and applied, but also the extraction from that test, whatever it may be, of
cases that demand either an extensive assessment of the evidence or a prolonged
analysis of novel theories of law. The case law – most recently and comprehensively
examined in the judgment of Collins J. in Blythe v. Commissioner of An Garda
Síochána [2023] IECA 255 (“Blythe”) (in particular, at paras. 123-129) – shows how
the process of formulating the strength of a case that lies between the arguable and the
unanswerable, risks immersion in a sea of adjectives which, thereafter, are not always
consistently applied or understood.
108. As it happens, the term ‘prima facie case’ (with and without the elaboration ‘strong’)
has proven itself particularly vulnerable to that phenomenon. As the analysis in Blythe
shows, this has been variously used to describe positions along a spectrum that start
with arguability or a moderately enhanced version thereof, to proof on the balance of
probabilities that the claimant would succeed at trial. In Blythe itself (where the issue
was the merits limb of the test to be applied in determining whether to grant a Norwich
70
Pharmacal order), Collins J. (with whom Murray and Ní Raifeartaigh JJ agreed) settled
on the following formulation in respect of applications of that kind (at para. 129):
‘in my view, as a threshold requirement, an applicant for a Norwich Pharmacal
order should be required to demonstrate that he or she has a strong case against
the alleged wrongdoer. That threshold test is well-established in this
jurisdiction and its application is more predictable and certain than any
threshold based on a “good arguable case”, “prima facie” or “strong prima
facie case”. It requires that the court be satisfied that the applicant's putative
claim against the alleged wrongdoer is “likely to succeed at trial”: That does
not, however, involve the court in a trial of the action or require it to adjudicate
on complex or contested issues or on the merits of any defence potentially
available to the alleged wrongdoer.’
109. Emphasising that where a court in considering an application for a stay or injunction
concludes that this test has been met, it is by definition engaged in a preliminary
assessment and thus not tying the trial court to any conclusion on any aspect of the
merits, this mirrors the test as is often said to apply in private law to the grant of a
mandatory interlocutory injunction. The various expressions of that test are gathered
together in the decision of the Court of Appeal in Ryanair DAC v. Skyscanner Ltd.
[2022] IECA 64 at paras. 64-65: ‘a strong case that … is likely to succeed at the hearing
of the action’; ‘unusually strong and clear’; ‘the clearest of cases’; ‘particularly strong
and powerful’; ‘directed to the degree of assuredness the court would have that the
applicant will succeed having regard to the clarity of their case, and the credibility of
the evidence they adduce to support it’ (references omitted).
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110. For the reasons I have outlined it is appropriate that the same test be usually applied
to applications for stays arresting the operation of legislative measures and
administrative decisions of the kind in issue in this appeal. The English cases to which
I have referred eschew the imposition of a threshold or gateway test of a strong prima
facie case for public law injunctions, preferring to present this as a general, but not
invariable, requirement, and locating it in the broader inquiry as to the ‘the balance of
convenience’ (see Courts and Tribunals Judiciary, The Administrative Court: Judicial
Review Guide 2025 (August 2025) at paras. 16.6.1-16.6.2). Clarity of analysis is better
achieved, however, if the requirement of a ‘strong case’ as I have defined it is viewed
as a specific inquiry that should be undertaken by the court when deciding whether to
grant interim relief the effect of which is to arrest or suspend the enforcement of legal
provisions, or decisions made by statutory regulatory agencies of the kind in issue here.
111. At the risk of repetition, it should be understood that the requirement to establish a
strong case as a general precondition to such relief is subject to three provisos. First, it
applies to applications to suspend the operation of legislative measures and to
administrative decisions of general application of the kind in issue in this appeal. These
include decisions made by statutory agencies when exercising regulatory powers to
protect the interests of consumers in sectors of the economy, the entitlements and
expectations of users of particular services or specific rights vested in the public as a
whole. Whether the requirement should be more generally applied to other
administrative decisions is a matter for debate in another case.
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112. Second, this is a general requirement to which extreme and unusual circumstances
may well demand exceptions. While stressing that usually this hurdle must be
surmounted, there may be cases in which justice demands that it be dispsensed with.
Third, built into the formulation of a strong case is the assumption that a point of law
can be identified by an applicant or appellant on which a court can in an interlocutory
application confidently reach a conclusion for this purpose. If a point requires extensive
submissions, detailed analysis of extensive evidence, or if the point is one of legal
novelty or complexity, while it may ultimately ground a case that succeeds, it should
be viewed as generally insufficiently clear and sharp to sustain an interlocutory order
of this kind. If, therefore, the statutory appeal in issue in this case is as broad as TikTok
seemingly contends it to be (and, obviously, I am expressing no view on this), the fact
it has a good case that the regulator erred in its analysis of the evidence or in its detailed
application of the law to that evidence will not avail it in an application to arrest a
decision that is adverse to its interests. While different considerations will apply if a
stay is sought to be continued pending the delivery of a decision in a case or pending
appeal (when the trial judge will have had an opportunity to reach a fully informed view
of all aspects of the merits of the case), an applicant or appellant can only usually expect
to succeed in a pre-trial interlocutory application to suspend the operation of such a
decision if it can point to an issue that is clear, that can be precisely formulated and
applied, and that a court in an interlocutory application can conclude is of sufficient
merit to justify the grant of what should be understood as an exceptional and not a
routine remedy.
113. This means that applicants or appellants with stateable cases may find that they have
expended resources in complying with regulatory decisions that may be ultimately
73
quashed or set aside, and that they will be unable to recover the cost of that expenditure.
That, however, is a purely economic and commercial cost, which has always been
viewed by the law as meriting less rigorous protection than personal injury or direct
damage to property. Such losses reflect the costs of transacting in a sector of the
economy, or field of activity, that has been made subject to such regulation. In
circumstances where the Oireachtas has not provided for automatic stays on decisions
of the regulatory agency in question, it inevitably follows that the legislative
understanding is that those subject to such regulatory decisions face the risk that they
will have to comply with measures that may ultimately be quashed or set aside. Even
where a strong case as I have explained it is established by an applicant or appellant, a
court should not arrest decisions of this kind simply because there will be an
irrecoverable financial loss if the decision is to take effect. Something significantly
more – such as a clear and substantial disproportion between the cost to and impact
upon the applicant or appellant if the decision is not stayed, and the impact upon the
public interest reflected in the decision if it is stayed – is required.
The correct approach to the stay application in this case
114. Decisions made by the DPC under Article 58 of the GDPR implement a strong policy
of the Community legislator in the protection of personal data of EU citizens, in this
case where that data is transferred out of the EEA. Those decisions operate to protect
the fundamental rights of EU citizens, and it is the DPC – and not the courts – that has
been vested by the legislator with the initial and significant responsibility of
determining how those rights ought thus to be guarded within the framework of the
GDPR. Here, the decision arises from TikTok’s commercial operations, and as with
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decisions of other regulators of commercial activity, the courts should be slow to
suspend those determinations. Where they are challenged, the following approach
should guide a court determining whether an interim order granting a stay should be
made:
(i) As explained in Okunade, there is no question of a stay being granted unless the
applicant or appellant establishes that they have a stateable case.
(ii) It should only be in the most unusual circumstances – if ever – that a stay should
be granted without the establishment by the applicant or appellant that they have
a strong case in the sense explained in this judgment. In cases of this kind, this
demands identification of a ground that is sufficiently clear and weighty that the
court can conclude that the point is one that is that is likely to succeed at trial.
(iii) In the uncommon situation in which the court concludes that the applicant or
appellant in proceedings of the kind in issue here enjoys a realistic prospect that
they will recover damages to compensate them for losses caused by a decision
that is ultimately quashed, and where there are reasonable grounds for believing
that the harm caused by the decision can be substantially reduced to a claim for
damages, one would expect that a stay should rarely issue, and that the various
factors to which I have earlier referred would usually demand that an applicant
be left to their remedy in damages.
(iv) In the absence of any basis for such a claim in damages the court should not
undertake any analysis of whether the harm caused by the challenged order is
capable of calculation or determination. Unless there is a realistic prospect that
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there is a cause of action to recover damages at all, this is irrelevant to the
calculus.
(v) From there, the court must strike a balance between the irreparable harm caused
to the applicant or appellant in the event that a stay is not imposed and they
prevail in their claim, and the damage to the public interest in the administration
of the statutory scheme pursuant to which the regulator is functioning, if the
stay is granted. This is, necessarily, a fact sensitive inquiry dependant on a clear
identification both of the specific harm which it is alleged will be caused to the
applicant if the injunction or stay is not granted, and the particular damage to
the public interest in general or the rights of third parties in particular if it is.
(vi) While the presumptive validity of the regulator’s decision is taken into account
in requiring that an applicant establish a strong case as a precondition to a stay,
the court must also have regard in considering the public interest in the
administration of the statutory scheme in question to the fact that, where that
scheme is intended to operate to protect rights and interests of service users, or
indeed the public at large, a stay should rarely issue where to do so will
jeopardise the effective protection of those entitlements in any substantial way.
(vii) The harm to the applicant should be examined cognisant of the fact that, usually,
irrecoverable expense incurred in complying with a regulatory decision – albeit
one eventually quashed on review or appeal – is properly understood as a cost
of conducting business in certain sectors of the economy, and an inevitable
consequence of the decision of the Oireachtas to establish powers of regulation
in that field. Courts in considering applications for such relief should not accede
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to them just because compliance with the decision will entail some irrecoverable
financial loss. Something significantly more – such as a clear and substantial
disproportion between the cost to and impact upon the applicant or appellant if
the decision is not stayed, and the impact upon the public interest reflected in
the decision if it is stayed – is required.
115. The parties in this appeal did not address the court in any detail as to the merits of the
underlying case, the DPC having conceded that TikTok had identified ‘serious doubts
as to the validity’ of its decision within the meaning of Zuckerfabrik and, it followed,
an ‘arguable case’ as contemplated by Okunade. What, exactly, the threshold of
‘serious doubts as to the validity’ of the measure meant, was not explored at the hearing.
That being so, and noting the lack of clarity around the meaning of that term, in normal
circumstances the court would afford the parties the opportunity to make further
submission on the orders it should make having regard to this reformulation of the
proper approach to an application of this kind.
116. However, the substantive statutory appeal has proceeded at a rapid pace. Mulcahy J.
granted the stay on 13 November, and this court heard the DPC’s appeal against that
decision over two days (17 and 18 February). The full hearing of the statutory appeal
commenced on 3 March. While I would adopt the view that the question of whether
TikTok has established a ‘strong case’ is an open one, by now the narrow issue of
whether it has met that threshold for the purposes of interim pre-trial relief has been
overtaken by the fact that the substantive hearing has concluded. In those
circumstances, it appears to me that the most sensible course of action is for the stay
granted by Mulcahy J. to be continued unless and until the DPC decides that it is
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appropriate to seek to have the issue revisited before him (whether pending delivery of
his judgment, a reference to the CJEU, any appeal from his decision, or otherwise). In
the event of such an application being made, Mulcahy J. will of course be considering
a different question from that now before this court, because he will no longer be
deciding whether to grant a stay pending the hearing of the substantive action. Clearly,
for the purposes of any such application the trial judge will take account of the merits
of the case, but he will be judging the strength of that case having heard the entire action
and, on that basis, will not be engaging in the type of preliminary assessment that I have
found should properly be made when determining whether to grant pre-trial relief.
117. Finally in this regard, I am not satisfied that this is a case in which, based upon the
information presently before the court, it can be said with any confidence that TikTok
might expect to obtain damages were a stay on the decision of the DPC refused and the
decision later quashed. Aside entirely from the immunity it enjoys pursuant to s. 154 of
the 2018 Act, the decision of the DPC was not presented before this court as anything
other than a bona fide determination reached on the basis of its appraisal of the
provisions of the GDPR as applied to the facts as found by it. As the case presently
appears, there is no basis on which it could be said that it would face liability in
domestic law for misfeasance in public office (if national law has any role in
conditioning a cause of action in damages arising from the DPC decision). I would
expect that the conditions attached to Francovich damages by the decision in Brasserie
du Pêcheur would present a significant difficulty were TikTok to seek to claim damages
on that basis for the discharge of a function of the kind arising here. The conditions
imposed by the Francovich jurisprudence on the recovery of damages are in such
circumstances, as counsel for the DPC correctly put it in argument, ‘onerous and
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difficult to achieve’. While, of course, the expression of a view to that effect at an
interlocutory stage should not impact upon the ability of a trial court to conclude
otherwise, the extent of the adjudicative power vested in the DPC, and the absence of
any suggestion before this court that any infringement of TikTok’s rights was deliberate
or reckless would strongly point against such relief. While not prejudging any claim for
damages TikTok might choose to eventually agitate, I would for the purposes of this
application exclude the prospect of recovering any damages from my consideration of
the stay application. The question accordingly reduces itself to an inquiry as to whether
TikTok had a strong case and, if it did have such a case, where the balance of justice as
I have explained it above, properly lay.
The evidence in this case
118. In those circumstances, I will limit myself to observing that had the test formulated in
this judgment been applied, and had Mulcahy J. been satisfied that such a strong case
as I have defined it had been made out, he would have been correct to grant the stay.
Three factors combine to render the case one in which, exceptionally, the argument in
favour of a stay was compelling.
119. The first is the very short time for which the decision was to be stayed. This is a factor
to which Mulcahy J. rightly attached considerable significance. As he explained, the
decision itself allowed six months before the suspension order would take effect. As a
consequence of the temporary stay granted when the proceedings were initiated, that
period would have expired at the end of March 2026 were the stay not continued. By
then, the hearing of the appeal was likely to have commenced (as matters transpired,
the oral hearing had concluded by then). It was reasonable to assume that temporally,
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therefore, the stay had a very limited impact. Of course, at the conclusion of the
substantive appeal hearing the question of extending the stay was liable to have arisen
again pending judgment, the making of a reference to the CJEU, or in the event of an
appeal. However, these are distinct stages of the proceedings and, as I have explained,
by then the court will have formed an opinion as to the broader merits of the proceedings
which would, quite properly, exercise a significant influence over whether any stay
should be extended.
120. The second relates to the impact on the rights of users of TikTok’s services in the
event that the application for a stay were successful. Here, I attach significance to the
fact that the DPC has not decided that the Chinese legal system fails, at a general level,
to ensure essentially equivalent protection of that data to that guaranteed in the EU for
transfers pursuant to the SCCs implemented by TikTok. It has, in particular, not found
that the Chinese authorities have the legal power to compel the disclosure of data that
is temporarily transferred by TikTok in this way. Had the DPC so concluded, the court
would be faced with a very particular balancing exercise. On one side of that balance
would have stood a presumptively lawful decision by the authority with the power of
determining the matter, that the state of Chinese law was such that access of this nature
could lawfully occur. That finding – and the systemic importance of its being
recognised and implemented – would have fallen to be measured against the impact
upon TikTok if it complied with the decision, won its appeal, and could not obtain
damages to compensate it for the resulting loss.
121. However, what the DPC has decided here is, in a number of important respects, far
narrower and more specific. Far from contradicting the account of Chinese law
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proffered by TikTok, it elected to accept that account, and to take it ‘at its height and
at face value’. This necessarily defines what exactly the court must presume to be valid.
Thus, the DPC has concluded that TikTok has failed to establish that for a period that
ended in May 2023, the protections provided by a combination of Chinese law, the
SCCs, and the supplementary measures put in place by TikTok were not adequate in
relation to the temporary transfer of data. What is presumed valid is a determination
of a failure of assessment, not an affirmative finding as to the state of the law in the
third country.
122. That failure of assessment is not of a present state of affairs, but of an historic situation.
The failure relates to circumstances that are now more than three years old. Moreover,
those circumstances are focussed only on the temporary transfer of data. Thus, the DPC
did not find any want in TikTok’s assessment that under Chinese law data located
outside that jurisdiction – although accessible from within China – could not be the
subject of lawful interception by the Chinese authorities. The failure of assessment as
found by the DPC related to situations in which that data had been temporarily
transferred to China in the manner I have previously described. This was also the
subject of some debate with counsel for the DPC at the hearing. Counsel for the DPC
was clear in their position that (a) the DPC did not find fault with TikTok’s assessment
that once the data was outside China Chinese law did not permit the its authorities to
access that data, and (b) that the fundamental point made by the DPC was that TikTok
had not shown that access to the data could not be obtained while it was being processed
temporarily by personnel in China.
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123. This limits the risk to the rights of TikTok’s customers if the halting of the data
transfers is suspended and the decision is eventually upheld. As a result of what
Mulcahy J. correctly characterised as the DPC’s ‘negative finding’, combined with the
limited reach of the DPC’s concern (access by the Chinese authorities in the course of
a temporary transfer of data), the threat to those rights is, necessarily, less immediate
and more remote than it would have been had there been a final and considered
determination that there was a lack of essential equivalence to EU law. It is also a threat
that occurs in circumstances that have altered in the course of the time period covered
by the decision, insofar as the breach of the rights of TikTok’s users to be provided with
information on data transfers pursuant to Article 13(1)(f) of the GDPR was found to
have ceased on 1 December 2022.
124. In saying this I do not ignore the point urged strongly by the DPC that included in the
data protection rights of TikTok’s customers was a right not to have their data
transferred to a jurisdiction in circumstances in which the data controller had not
satisfied themselves to the required standard as to the degree of protection afforded to
the data by the laws of that jurisdiction. Nor do I overlook that the DPC has, for the
purposes of this application, adduced expert evidence from Professor Zang that, if
correct, undermines significantly critical aspects of the version of Chinese law
presented by TikTok to the DPC as part of the process leading to the impugned decision
(this evidence has been contested in responding affidavit evidence and in reports of
Professor Xu and Mr. Zhang of Fangda Partners). However, while the right of TikTok’s
users as described by the DPC is both protected and important, the critical issue in
determining whether to grant an interim stay must be focussed upon the risk of intrusion
by the Chinese authorities in the personal data of TikTok’s users having regard to the
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findings made in the impugned decision. Even then, were one to take account of
evidence favourable to the DPC that is extrinsic to that decision, the evidence is that
the Chinese authorities have never sought to obtain from TikTok or its personnel EEA
user data, and that the effect of the implementation of Project Clover has been to further
restrict the access by China Group Entity employees to the personal data of EEA users,
and has resulted in pseudonymisation of that data. For my part, I do not see how the
court in determining whether to grant the stay sought can properly now effectively re-
open the evidential framework within which the DPC determined its inquiry by looking
to evidence that directly contradicts the evidence tendered by Professor Xu in the course
of the inquiry, having regard to the fact that the DPC proceeded in its decision on the
basis that it taken TikTok’s evidence ‘at its height’. For these various reasons, and
having regard to the enhanced protections introduced on foot of Project Clover, I agree
with the conclusion of the trial judge that even assuming the validity of the DPC’s
decision, ‘the risk to EEA user data during the period of any required stay does not
appear to be significant’ (at para. 231).
125. The third factor relates to the impact on TikTok if the decision is not stayed and found
to be unlawful. Here, the court must be astute to the combined and related risks that
present in a context in which the court is determining the application for a stay solely
on the basis of affidavit evidence, in which the temptation for applicants to overstate
and exaggerate the impact of a decision of this kind is ever present, and having regard
to my earlier analysis positing that a stay should not issue only because a claimant has
tendered evidence that they will incur financial loss if the order is not made and they
succeed in their claim. That said, on any view the contention that the impact of a
decision such as that in issue here for any undertaking engaged in cross-border activities
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is immense, and is both inherently plausible and supported by cogent, detailed and
convincing evidence.
126. The affidavits sworn by Ms Elaine Fox on behalf of TikTok indicate that the data
transfers in question occur by way of secure and controlled remote access by authorised
personnel within entities based in China, who perform a range of operational,
engineering, security and product-related functions necessary to the operation of the
TikTok platform in the EEA. It is further averred that, even following the
implementation of Project Clover, such remote access forms part of an integrated global
operational model, whereby those personnel support, inter alia, platform stability,
incident response, content delivery systems and the ongoing development and
deployment of product features. On that basis, compliance with the suspension order
would not merely entail the cessation of a discrete category of data flows, but would,
in turn, require the removal or replacement of those functions from the global
operational structure that TikTok has instituted.
127. The evidence is that in order to comply with such a requirement, TikTok would need
to undertake a process of what is described as ‘headcount and capacity buildback’,
involving the relocation within the EEA or other permitted jurisdictions of functions
presently performed by those personnel. That process would, on the evidence, require
not only the recruitment of additional personnel, but also the transfer or reconstruction
of institutional knowledge, the reconfiguration of technical systems and workflows, and
the reorganisation of engineering and operational teams presently structured on a global
basis. The affidavit evidence also describes the architecture within which those
functions presently operate, including the use of geographically distributed data centres
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and controlled remote access systems, together with supplementary measures, designed
to regulate and secure access to EEA user data. In that context, the cessation of remote
access from personnel based in China would necessitate a re-engineering of those
arrangements, rather than a simple reallocation of tasks.
128. Not only is this credibly averred, but the evidence is that compliance with the orders
will restrict TikTok’s ability to effect product and feature updates, algorithm updates,
bug identification and issues resolution, and the prevention and resolution of platform
and service outages. That evidence is made more intelligible when read against the
evidence of the present operating model: the case advanced by TikTok is that the
personnel whose access would be affected are not peripheral to the business, but support
functions said to be necessary to the ongoing operation, maintenance and development
of the platform. The evidence is that this will cause a significant decrease in user
engagement with the platform, and thus both potentially impact its user base, and create
the risk that some users shift their attention and engagement to competing service
providers. TikTok is a ‘data driven’ platform, and the suspension orders will have the
effect of restricting data access for a substantial share of the personnel that operate and
support the platform. It is difficult to see how it could not but have a very significant
impact on its day-to-day operations.
129. All of this is likely to impact on significant lost profit contributions, estimated in the
affidavit evidence as being in the region of US$1,716 million and cause consequent
brand damage and impairment, reduction in shareholder value, and a six-month delay
in the launch of TikTok shop in those parts of the EEA region in which it is not presently
available. In addition, TikTok says that other TikTok entities outside the EEA will incur
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additional personnel costs of US$3.105 billion. This will be accompanied by an
inevitable loss of institutional knowledge and expertise, and an adverse impact on
TikTok’s competitiveness. It will also, on TikTok’s evidence, result in significant
decreases in productivity across a range of different key roles – engineers, data
scientists, product managers and quality assurance personnel (the range of the impact
runs from between 18% to 46% in these different roles). Even allowing for the
questions raised in the DPC’s evidence around these losses and the methodology
brought to bear on their calculation, the figures are, as the trial judge said, on any view,
very significant. I agree with his assessment that it ‘has established a probability that
it will incur very significant costs if required to implement the Suspension Solution’,
and with his description of the evidence it has adduced to support this as ‘robust’ (at
para. 199). While – as the DPC emphasised – these figures fall to be considered against
the backdrop of a business that appears to be immensely profitable, and the figures
constitute a small proportion of its annual revenue, I am not certain that this is the
appropriate benchmark against which to judge their proportionality. They are perhaps
more usefully viewed as multiples of the sum fixed by the DPC itself as the proper fine
for the breaches it found over a period of almost three years.
130. It follows that the potential impact identified is not confined to loss and damage that
is simply financial or to matters of cost or inconvenience. Rather, on the evidence
available to the court on this application, there is a credible basis for concluding that
TikTok’s compliance within the timeframe specified in the decision of the DPC could
give rise to material operational disruption, including risks to platform functionality,
delays in development and deployment of features, and pressures on system resilience
and incident response capability.
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131. The prejudice extends to the forced re-engineering of an operating model said to
depend, at present, on controlled remote access by identified personnel to limited
categories of data, the migration or rebuilding of those functions elsewhere, the
associated loss of expertise and institutional knowledge, and the risk of impaired service
continuity during that process. The consequent dislocation alleged by TikTok is, on its
face, grounded in a sufficiently detailed account of the manner in which the platform
operates, such that it cannot be characterised as speculative. The evidence available to
the court on this application establishes that the implementation of the decision would
involve a wholesale disruption to a significant part of TikTok’s commercial operations
which, if effected, would appear to be without precedent in the industry within which
it operates.
132. Leaving aside the difficulties in reducing that damage to a reliable assessment that
could form the basis for an action for damages (which, as I have said I simply do not
see as arising in this case), the nature and scale of the impact on TikTok if the decision
were not stayed pending the outcome of the proceeding in the High Court, when viewed
in the light of the duration of the stay and the actual threat to the data protection rights
of its users, would – if a strong case had been established – have justified the making
by Mulcahy J. of the order sought by it.
133. Whether it is appropriate to extend this stay further will depend upon the consideration
by the trial judge of the various factors addressed in this judgment, while bearing in
mind that applications for a stay after the case has run its full course raise issues that
are in some respects quite distinct from those arising where a stay is sought at a pre-
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trial stage. That question could arise pending the delivery of judgment, the making of a
reference to the CJEU or pending appeal. In the latter case, the outcome of a further
stay application will obviously depend on outcome: if TikTok succeeds, one would
have thought that the proven strength of its case would weigh heavily in the balance. If
it fails, the converse must apply. In the event of a reference, the trial judge will have to
consider whether the strength of the case as a whole as he then assesses it when viewed
against the relationship between the damage to TikTok if there is no stay, and the impact
on the public interest if there is, meets the consideration of a clear and substantial
disproportion articulated in the course of this judgment.
Conclusion
134. For the foregoing reasons I would dismiss this appeal. The legal test governing a stay
on a decision of the DPC of the kind in issue in this case is properly one of national,
and not of European Union, law. Insofar as the DPC has requested that the court refer
a question to the CJEU on this issue, I have concluded that the court should not do so
for the reasons set forth in this judgment, including that the proper resolution of the
issue is so clear as not to require a reference. I have explained how that test should be
reconfigured for applications seeking to stay the operation of regulatory decisions of
general effect intended to protect the rights and interests of users of services such as
that in issue here. These orders should be viewed as wholly exceptional. Such a stay
should only very rarely, if ever, be granted unless the court is satisfied that the applicant
or appellant has established a strong case as I have defined it here. If such a strong case
is established, the court will only rarely be concerned with whether the loss or damage
caused by the refusal of the stay will be capable of calculation, and will more commonly
be addressing itself to the balance of justice between the impact on the applicant or
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appellant if the stay is refused and they succeed in their challenge or appeal, and the
impact on the public interest or rights of third parties if the stay is granted and the
applicant or appellant fails in their case. It is not appropriate for this court at this stage
of these proceedings to express a view as to whether such a strong case has been
established. If it had been established, Mulcahy J. would have been correct in the
circumstances to grant the stay. That being so, it appears to me that the most sensible
course of action is for the stay granted by Mulcahy J. to be continued unless and until
the DPC decides that it is appropriate to seek to have the issue revisited before him
(whether at the conclusion of the submissions, pending a reference to the CJEU, or
pending any appeal, or otherwise). In the event of such an application being made,
Mulcahy J. can then address any such application while taking account of the various
factors identified in the course of this judgment.
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