Belgian court upholds the legal foundation of investment obligations under the AVMS Directive

CEPI, the European Audiovisual Production Association, welcomes the ruling of the Belgian Constitutional Court upholding the investment obligations imposed by the Fédération Wallonie-Bruxelles on audiovisual media service providers, including streaming platforms. This ruling confirms that the investment obligations imposed by the Fédération Wallonie-Bruxelles are constitutionally valid, and rejects the majority of Netflix's claims against it.

This decision confirms that the legal framework established by Article 13(2) of the EU Audiovisual Media Services Directive (AVMSD) allows Member States to require streaming platforms, including those established in other Member States, to contribute financially to the production of European audiovisual works when they target audiences on their territory.

Most significantly, the Court confirms that the contribution regime is a valid implementation of Article 13(2) AVMSD, which expressly authorises such obligations. It further dismisses Netflix's attempt to recharacterise the regime as pursuing purely economic objectives, which aimed to undermine the contribution frameworks across the continent. The Court affirms that promoting cultural and linguistic diversity is the legitimate and primary purpose of such measures.

The progressive rate structure was also upheld as proportionate, as was the requirement that a minimum share of investments generate economic returns within the French-speaking region.

Anthony Muldoon, President of CEPI, said: “This ruling matters beyond Belgium. It confirms that the AVMSD framework gives Member States a solid legal basis to ask platforms generating significant revenues from European audiences to invest meaningfully in the creative sectors they depend on. That principle, that those who benefit from a cultural market should contribute to its sustainability, is one CEPI has defended for years. Today it has been upheld by a national court that examined the EU legal framework in depth.”

For CEPI and its members, including its Belgian Flemish member VOFTP, both of which are intervening parties in these proceedings, the ruling carries implications in Europe as a whole. Similar contribution frameworks are in place or under development across Europe. - The Belgian Constitutional Court's thorough rejection of Netflix’s challenge reinforces the legal robustness of the AVMSD framework and provides useful guidance for regulators and legislators across the continent.

The Belgian Constitutional Court has also referred five preliminary questions to the Court of Justice of the EU, relating to specific aspects of the implementation of such schemes. Importantly, the Court has already confirmed the legitimacy of the principle of investment obligations under the AVMSD. We expect the European Court of Justice to provide answers consistent with the objectives of the AVMSD and the EU's broader commitment to cultural diversity. We will follow the situation at European level closely.

CEPI calls on the European Commission and Member States to take note of this ruling as they continue to monitor the implementation of the AVMSD across the Union. The decision demonstrates that the legal architecture supporting investment obligations for streaming platforms is sound, and that it can withstand legal challenge when properly designed and implemented. We also call on Member States that have not yet implemented such frameworks to take this ruling as a strong signal and to move forward.

Independent producers across Europe have long called for a level playing field in which the growing revenues captured by global streaming services translate into meaningful investment in local creative talent, stories and culture. Today's ruling moves us meaningfully closer to that goal.