The Court of Justice of the European Union ruled against Netflix, dismissing that the streaming giant is not supporting the production and distribution of German films in its service.
Netflix is opposed to a German law that would require it to contribute a portion of the revenue earned by its service to the country's national subsidy system, the Federal Film Board (FFA), which finances local film and television production.
German cinemas and television networks already contribute to the fund, but a law, passed in 2014 and accepted by the European Union in 2016, requires that all broadcasting services in Germany do so as well.
Netflix challenged the law, saying that it should not be ruled by it, since, technically, it is not a German company (Netflix has its European headquarters in the Netherlands). Netflix took its case to the European court, arguing that it could not defend itself effectively in Germany, but the transmission service company fears that if the German law is respected, they could face different regulations in different countries of Europe.
Netflix's objection to the law did not prevent the company from acquiring Mute, Duncan Jones's science fiction thriller starring Alexander Skarsgard and Paul Rudd, which received more than $ 1.4 million (1.2 million euros) in German subsidies. The producer of the film, Liberty Productions, not Netflix, was the one who requested the subsidies, although Mute was marketed as a "Netflix Original" worldwide.
If Netflix fails to meet its objectives, it must pay the German Government all the corresponding fees since the installation of the law in 2014 until this year.
While Netflix manages to get along with the European Union and the German government, here I leave you the Mute trailer.
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