Netflix Faces Challenges with Local Production Rules in Belgium, But Legal Discussions Continue
Belgium’s Constitutional Court has dismissed an appeal by Netflix concerning local production investment requirements in the Wallonia-Brussels region. The ruling upholds a decision mandating streaming platforms to allocate up to 9.5% of their turnover to local investments, a significant increase from the previous rate of 2.2%.
Netflix’s appeal, filed last summer, aimed to contest a ruling from 2024 by the Wallonia-Brussels Federation (FWB), which sought to enhance support for local cultural production. This investment obligation aligns with the European Union’s 2018 Audiovisual Media Services Directive (AVMSD), which mandates that streaming services ensure at least 30% of their content is of European origin.
As part of implementing the AVMSD, various EU regions have adopted similar investment requirements, including safeguards to maintain producer independence and protect rights.
While the Court dismissed Netflix’s appeal, it also submitted preliminary questions to the Court of Justice of the European Union (CJEU) regarding specific aspects of the imposed obligations, leaving the matter open for further legal interpretation.
European audiovisual organizations, including Pro Spere, UPFF+, SAA AISBL, ARPI, and the European Producers Club (EPC), welcomed the ruling in a joint statement. They downplayed the significance of the CJEU referral, stating, “The referral of certain questions to the Court of Justice of the European Union must be interpreted carefully and without exaggeration.”
The organizations emphasized that this referral does not challenge the principle of platform contributions or the overall aim of promoting cultural diversity. Instead, it pertains to specific details, including eligible investment forms and considerations for contributions made in other EU member states.
This ruling is particularly important for the cultural landscape in Wallonia-Brussels, as it reinforces the necessity for investments that support French-speaking Belgian audiovisual works. A joint statement reflected on this, noting, “It acknowledges that cultural diversity cannot be preserved without concrete instruments, structured financing, and effective support for works, talents, and creative sectors rooted in Belgium.”
Moreover, this decision is significant within the context of the ongoing five-year review of the AVMSD, which was originally adopted in 2018 with a deadline for full transposition into national laws by September 2020. U.S. streaming services and studios are anticipated to intensify their lobbying efforts to soften some of the obligations and quotas imposed by the directive during this review.
There are indications that Netflix’s appeal may have aimed to establish a legal precedent in Europe that could support challenges to similar AVMSD standards in other regions.
