The European Union has launched legal action against Hungary because of new rules governing civic groups which receive funds from abroad.

The European Commission said Thursday that the law approved by Hungary's parliament in June could prevent nongovernmental organizations "from raising funds and would restrict their ability to carry out their work."

Civic groups getting more than around $26,700 from abroad have to register with the courts, reveal detailed information about donors giving more than $1,850 and identify themselves as being foreign-funded on their websites and media publications.

Hungary's government says it wants to ensure transparency among the NGOs, some of which say they won't comply with the regulations because they consider them discriminatory.

The government says foreign-funded NGOs which advocate for asylum seekers are opposed to Hungary's interests.