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Image header Agence Europe
Europe Daily Bulletin No. 12021
Contents Publication in full By article 23 / 31
COURT OF JUSTICE OF THE EU / Digital

General Court states German tax assisting cinematographic sector targeting Netflix is compatible with the EU rules

On Wednesday 16 May, the General Court of the EU rejected the complaint from the video on demand (VOD) service, Netflix, which sought to annul a decision by the European Commission that holds that the German tax system for helping cinematographic production as compatible with the internal market (T-818/16).

In 2014, Germany extended the special tax, which cinema and video sector companies, as well as broadcasters, have to pay to VOD providers established outside Germany but which offer pay on demand services (films, TV emissions, documentaries that exceed 58 minutes and are broadcast on the Internet in German) to German customers.

The Commission stated that this amendment to the aid regime was compatible with the internal market until 31 December 2016. This decision is contested by Netflix.

In its decision, the General Court holds that the appeal by Netflix is inadmissible. It argues that the VOD provider is neither directly nor individually affected by the Commission's decision. Netflix has not demonstrated that its position on the market concerned would be substantially affected by the German tax, which applies to all market actors responding to the objective criteria set out.  (Original version in French by Mathieu Bion)

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