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Sweden's parliament just voted to support chat control in the Council of Ministers at EU level.

As per the comments there, this still has to go through Parlament and the ECJ is the 'last stop' on this

My understanding is the ECJ can overturn legislation that has been passed and appealed, but it can't pre-emptively block legislation?

That's a good question, I'd say you are right but I'm not sure of all the details

(but then again, between passing and actual implementation there's a much to unfold)