The US government has strongly criticised Germany’s planned investment requirement for streaming platforms and suggested that it may breach the transatlantic trade agreement between the EU and the US. Berlin, however, has rejected the allegations and is pressing ahead with the proposed legislation.
According to the US Trade Representative, Jamieson Greer, the draft of the so-called MedienInvestVG is specifically targeted at US companies. The legislation stipulates that streaming services and audiovisual providers must reinvest a fixed proportion of their revenue generated in Germany into local film and TV series productions.
Speaking to Bloomberg, Greer described the measure as discriminatory and accused the German government of effectively using US corporations as a source of funding for national cultural policy. He also argued that the plan contravenes the recently negotiated EU-US trade framework (the „Turnberry Agreement“), which is intended to prevent new digital trade barriers.
The Federal Government rejects this interpretation. A government spokesperson emphasised that this is not a levy or a tax, but a cultural policy instrument designed to strengthen Germany as a film production hub. Furthermore, the scheme complies with European guidelines on film and media funding.
The draft bill forms part of a wider reform of German film and media funding and provides for an investment quota of around eight per cent of streaming revenue generated in Germany. In addition, production and language quotas, as well as an expanded funding framework for the German film industry, are envisaged.
Industry associations and streaming services had already warned in the run-up to the legislation of potential competitive disadvantages and additional red tape. Supporters of the regulation, on the other hand, point to similar models in other European countries, such as France.
The political dispute is taking place at a time of strained transatlantic trade relations and could further complicate the ratification of the EU-US trade agreement.