Belgium's Constitutional Court Upholds Local Production Investment Requirements for Netflix in Wallonia-Brussels Region
Belgium's Constitutional Court has dismissed Netflix's appeal against local production investment requirements in the French-Speaking Wallonia-Brussels region. The appeal was in response to a decision by the Wallonia-Brussels Federation to mandate streamers to invest up to 9.5% of their turnover in local production, in compliance with the EU's Audiovisual Media Services Directive. While the Court rejected the appeal, it referred certain questions to the Court of Justice of the European Union, keeping the legal debate ongoing.
European audiovisual professional organizations welcomed the ruling and downplayed the CJEU referral, emphasizing that it does not challenge the principle of platform contributions. The decision is seen as significant for promoting cultural and linguistic diversity in the Wallonia-Brussels region, recognizing the importance of supporting French-speaking Belgian audiovisual works.
The ruling also holds importance for the ongoing review of the AVMSD, with U.S. streamers and studios expected to lobby for adjustments to the directive's obligations and quotas. The Netflix appeal was speculated to potentially set a legal precedent in Europe to counter AVMSD obligations in other European territories. Netflix acknowledged the Court's decision and stated that they will study it in detail.
In conclusion, the Belgian Constitutional Court's decision regarding Netflix's challenge to the Wallonia-Brussels investment obligation underscores the importance of supporting local production and cultural diversity in the region. The referral to the European Court of Justice keeps the legal discussion open, with implications for the broader European audiovisual landscape.