According to reports, EU judges said communications data could only be retained if it was used to fight serious crime.
Its verdict came after a legal challenge to the UK government's surveillance legislation.
The challenge was initially championed by Brexit Secretary David Davis, who was then a backbench Conservative MP.
Meanwhile, the ECJ has ruled that a "general and indiscriminate retention" of data is against EU law and can only be done under certain conditions and "solely for the purpose of fighting serious crime".
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