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EU Flags Legal Problems in Germany's Draft Streaming Investment Law

Brussels warned the proposal may unduly restrict providers and lacks needed market evidence, prompting Berlin to say it will review and likely revise the draft to lower legal risk.

Overview

  • The European Commission's DG CONNECT formally told Germany the MedienInvestVG raises serious concerns about proportionality and non‑discrimination for cross‑border services.
  • Commission objections target the 8% investment quota's empirical basis, the lack of differentiation between service types, strict subquotas, and short rights‑reversion periods that limit international exploitation.
  • The Kulturstaatsministerium responded that the Commission's remarks are a routine part of notification, that no fundamental incompatibility was found, and that the government will examine recommended clarifications.
  • Key features of the draft include an 8% reinvestment requirement (with a 12% alternative), a €10 million turnover threshold, FFA oversight, and a penalty set at 75% of missed investments.
  • The proposal now faces increased risk of legal challenges after a constitutional opinion from Udo Di Fabio and the Commission's critique, making amendments and a delay before Bundestag passage more likely and creating uncertainty for streamers and German producers.