The European Commission on Wednesday moved on the second phase of legal action against Hungary for its law regulating foreign-funded Non-Governmental Organisations. The commission launched legal action against Hungary in July over a controversial law, which came into effect in June. The controversial law, under which NGOs receiving more than 24,000 Euros (28,000 dollars) of direct or indirect funding from abroad, will have to register as “civic organisations funded from abroad.” On Wednesday, the commission issued a so-called reasoned opinion detailing the commission’s concern over the law and calling on Hungary to comply with EU regulations in the matter. Hungary had failed to address the concerns brought up by the commission in July. Hungary now has one month to take the steps necessary to comply with the request. Report said if the country failed to do this; the commission may refer the case to the European Court of Justice, which could impose penalties. The commission took action against Hungary after concluding that the law was not compliant with the bloc’s rules on the right to freedom of association, the free movement of capital and the right to protection of private life and of personal data.