Netflix loses Belgium court case
Netflix suffered a major EU blow in Belgium this week that will force changes to how it operates in Europe, marking regulatory compliance as an escalating cost of scale for streamers. The decision raises fresh legal risk that boards and content strategists must now factor into EU release and distribution planning. (cbr.com)
Belgium’s Constitutional Court rejected Netflix’s appeal against the Wallonia‑Brussels media decree that phases streamer investment obligations up to a maximum 9.5% of regional turnover by 2027. (variety.com) The court described the investment scheme as “proportionate” and “reasonably justified,” and it dismissed most of Netflix’s constitutional arguments against the framework. (screendaily.com) The decree raises required contributions from an initial 2.2% to as much as 9.5% and specifically targets Belgian French‑language independent productions in a market serving roughly 4.6 million residents. (variety.com) Judges referred four preliminary questions about how the obligation operates to the Court of Justice of the European Union, including whether the acquisition of distribution rights can count as an eligible investment and how payments into public bodies should be treated. (screendaily.com) Disney+ had formally joined the dispute as an interested party alongside Netflix, signalling coordinated industry pushback on the Wallonia‑Brussels scheme. (screendaily.com) Because the Constitutional Court sent key legal questions to the EU Court of Justice, a first hearing in Luxembourg is not expected before June, creating a pathway for a longer EU‑level review of how the AVMSD is applied by member states. (variety.com)
