Commission wants to hit Netflix with movie tax

The proposals would also curb child viewing of ads for salty, fatty, sugary and alcohol products.

The European Commission wants to tap streaming video services like Netflix and Amazon Prime to fund the production of European movies and TV programs, after intense lobbying by France to help protect its industry.

A draft of the regulation obtained by POLITICO says, “member nations may require providers of on-demand audiovisual media services … to contribute financially to the production of European works.”

On-demand-video streaming services would also have to ensure that at least 20 percent of their catalogs for EU viewers were European productions. There is currently no quota.

According to the Commission’s new plans, member nations would be able to “impose financial contributions [direct investments or levies allocated to national film funds] to on-demand services in their jurisdictions,” according to the 32-page draft of the Audiovisual Media Services Directive states.

The plan falls short of France’s bid to erase country-of-origin rules, which would potentially expose businesses to laws of all 28 European Union countries, regardless of where they are headquartered. Currently, companies need only comply to the laws in the European country where they are based.

The draft reforms are part of the Commission update of audiovisual media laws for a market that is increasingly moving to online internet platforms and mobile devices. The plans are a cornerstone of the Digital Single Market, which seeks to create a seamless economy for online activities by removing national barriers to streaming, online delivery, copyright and networks.

The proposals will also curb child viewing of ads for salty, fatty, sugary and alcohol products, according to the document, which didn’t provide details. The Commission also wants to switch advertising caps for a daily limit of nearly 3.5 hours between 7 a.m. and 11 p.m. — so more interruptions during news shows and films.

The European Commission estimates 315 million Europeans use the internet daily and a Digital Single Market would add as much as €415 billion to the EU’s collective economy.

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