French Community wins court battle with Netflix, but wider fight goes on
Belgium’s Constitutional Court of Belgium has rejected a legal challenge by Netflix against rules requiring streaming platforms to fund local productions. However, the dispute is far from over. Key questions have been referred to Europe’s top court.
The case centres on a 2023 decree by the French Community, which increased the financial contribution that audiovisual companies must make to support independent local content. The levy, once set at 2.2% of turnover in the region, is due to rise to 9.5% by 2027.
Netflix argued that the measure was “disproportionate and discriminatory” and sought to have it annulled. The company said the contribution was significantly higher than in other EU countries and unfairly restricted its business.
The Constitutional Court disagreed. It ruled that the system is “reasonably justified” and that the 9.5% rate is proportionate, despite being higher than elsewhere in the EU. It therefore dismissed Netflix’s complaint.
However, the judges also raised doubts about whether the levy fully complies with European law. As a result, they have referred questions to the Court of Justice of the European Union for further clarification.
A final outcome could take considerable time. The broader legal battle between streaming platforms and regulators across Europe is therefore set to continue.
© Fred TANNEAU / AFP