A legal opinion commissioned by Amazon calls into question key elements of the proposed Media Investment Obligation Act (MedienInvestVG). In it, Udo Di Fabio, a former judge at the Federal Constitutional Court, concludes that the draft could contain provisions that are problematic under both constitutional law and European law.

The report relates to the Federal Government’s draft bill, which was adopted at the end of May 2026 and provides for a mandatory investment quota for video-on-demand providers.

The investment requirement as the core of the reform

The government’s draft Media Investment Act (MedienInvestVG) stipulates that providers of audiovisual media services will in future be required to invest a fixed proportion of their net turnover generated in Germany in European film and television series productions. According to the Federal Government, the base rate is eight per cent of net turnover.

In addition, the draft contains sub-quotas for certain types of works, as well as provisions on the management of rights and the structural arrangements for production participation.

The legal basis and objectives are set out in the Federal Government’s official draft bill and the corresponding Cabinet version dated 27 May 2026.

Expert report: Doubts regarding competence, the extent of the intervention and EU law

In his analysis, Di Fabio focuses on several key legal issues:

Firstly, the Federal legislative powers raised concerns. According to the expert report, parts of the regulation could fall within the cultural policy remit of the federal states.

Secondly, the study identifies a possible Interference with the freedom to choose one’s occupation under Article 12 of the Basic Law, as the investment and subsidy quotas could significantly curtail entrepreneurial freedom.

Thirdly, the regulations concerning the so-called Recurrence of back pain assessed critically. According to the expert report, this may not be fully covered by the EU Audiovisual Media Services Directive and could therefore give rise to conflicts with EU law.

The report should be regarded as a legal assessment of the specific government draft and supplements the comments and impact assessments already submitted as part of the legislative process.

Legal classification

The draft MedienInvestVG was adopted as part of the Federal Government’s film funding reform and forms part of a wider package aimed at strengthening Germany as a film production hub. In addition to the investment obligation, the reform also includes increased funding and structural adjustments to the film funding scheme.

According to the Federal Government, the law is intended to help anchor investment by international streaming providers more firmly in Germany as a production location, thereby strengthening the domestic film industry.

The draft also provides for an opening clause that allows for sector-specific solutions with higher investment ratios.

Outlook

It remains to be seen whether the expert report will have any impact on the further legislative process. The Federal Government continues to aim to draft the MedienInvestVG in such a way that it can come into force at the start of 2027. However, amendments to the draft could necessitate additional consultation or notification procedures at EU level, thereby delaying the timetable.

The investment obligation therefore remains the subject of an ongoing process of legal and industrial policy negotiations between the legislature, platform providers and the production sector.