EU Commission criticizes German streaming investment mandate

The European Commission has expressed significant opposition to a proposed German law that would mandate streaming services and broadcasters to invest a portion of their German revenue into European audiovisual works. The draft legislation, introduced by Culture Minister Wolfram Weimer, seeks to require commercial providers to invest at least eight percent of their German net turnover into European films and series.

In a letter from Roberto Viola, Head of the Directorate-General for Communications Networks, the Commission warned that the current version of the Media Services Investment Obligation Act could disproportionately restrict entrepreneurial freedom. The Commission noted a lack of empirical market research and criticized the plan for failing to sufficiently differentiate between various categories of media services. It also questioned whether the investment quotas and sub-quotas—designed to favor German-language and independent productions—exceed what is necessary to achieve the goal of promoting European works.

While media reports suggest this is a major setback for the proposed ‘film booster,’ the Federal Ministry of Culture has characterized the Commission’s response as ‘usual remarks’ within the EU procedure rather than a formal veto. The ministry indicated it intends to refine the draft to ensure legal compliance.