Settler group Regavim has filed a lawsuit against the European Union with the Israeli High Court, calling on the court to issue a verdict demanding the EU provide full reports on its construction activities in Area C and halt future projects for the Palestinians living in this area.
The group described the EU-funded structures in Area C as "against the law".
However, the petition was rejected by the court, prompting the settler group to file another one against the Israeli army's civil administration.
The organisation has recently began preparing another petition against new construction projects being carried out by the EU in a Palestinian area east of Bethlehem, near Mishor Adumim settlement.
According to the site, the group's new petition will demand the court order foreign and European diplomats in Israel to respect their host country and refrain from interfering in its affairs.
The court has given all parties to the case a chance until next August to submit their legal papers on the petition.
A new report by Euro-Mediterranean Human Rights Monitor found that 120 buildings financed by EU donors had been demolished during the first quarter of 2016.