Germany Responds to US Criticism of Streaming Law

Germany isn’t backing down in its response to accusations from the U.S. regarding its proposed streaming investment law. The law in question, approved by Chancellor Friedrich Merz’s cabinet, aims to require streamers and broadcasters to invest at least 8 percent of their annual revenue in German and European film and television production, or face financial penalties.

In a press conference in Berlin, government spokesperson Stefan Kornelius emphasized that the proposed law is a cultural policy tool and not a digital trade barrier. Despite U.S. Trade Representative Jamieson Greer’s concerns about the law conflicting with the EU-U.S. Turnberry trade pact, Kornelius assured that Germany remains committed to close and constructive trade relations with the U.S.

Kornelius highlighted that the proposed investment obligations are reasonable and comply with accepted cultural policy rules. He clarified that the funds from the streamers would directly support productions that they can commercialize on their platforms, emphasizing that the proposal is not a levy or tax.

Germany’s investment requirement is also put into perspective by similar regulations in other European countries. For example, France already mandates major streamers to invest a minimum of 20 percent of their local revenue in French and European productions, while Italy set its quota at 16 percent in 2024. Both countries operate under the EU’s Audiovisual Media Services Directive, which encourages platforms to financially contribute to European works.

This disagreement between Germany and the U.S. follows the recent agreement to implement the transatlantic trade pact struck at Trump’s golf resort in Turnberry, Scotland, last summer. It’s worth noting that Germany is not the only country under Washington’s scrutiny for streaming quotas, with House Republicans also targeting Canada’s Online Streaming Act earlier this year.

Overall, Germany is standing its ground on the streaming law controversy, emphasizing that the proposed investment requirements are just a standard part of cultural policy in Europe. The situation sheds light on the intricacies of international trade relations in the digital era.