Meta vs Italy: CJEU settles dispute over publisher fees

Klaudia Ciesielska
4 Min Read
Meta
Source: Unplash/Muhammad Asyfaul

The EU dispute over the rights of publishers and the obligations of online platforms has just entered a decisive phase. The Advocate General of the EU Court of Justice has suggested that member states can empower media outlets themselves against global tech giants – as long as they do not violate basic market principles such as freedom of contract.

At issue is an ongoing case between Meta, the owner of Facebook, and Italian communications regulator AGCOM. The dispute relates to the rules governing the remuneration of publishers for the platform’s use of snippets of their content – a phenomenon common in search results, feeds and news aggregators.

The Italian model for the implementation of the EU Copyright Directive stipulates that AGCOM can not only monitor information obligations, but also set remuneration criteria and settle disputes between platforms and publishers. Meta considers this incompatible with the principle of the single market and harmonisation of rules.

However, the CJEU spokesperson, Maciej Szpunar, said that the 2019 EU directive does indeed give member states room for manoeuvre. The aim of the legislation was not just to formally grant copyright, but to create a framework that allows the press to obtain a share of the revenue generated by platforms.

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This position does not yet prejudge the outcome of the dispute – the CJEU’s final judgment will be made within a few months – but it does set a course that could weigh on big tech’s relationship with the European media market. The Court often follows the opinion of the Advocate General.

Meta, as well as other platforms, have already criticised national implementations of the directive, including in France, Spain and Germany, claiming that the fragmentation of the rules hinders business in Europe. They argue that what is needed is a uniform approach that safeguards the interests of publishers on the one hand and does not stifle innovation on the other.

From a media market perspective, the stakes are high. Reuters Institute data shows that only a small proportion of users today access media sites directly – the majority arrive at content via search engines, social media or aggregators. If these platforms derive advertising revenue from this and the media do not participate in revenue sharing, their dependence deepens and their negotiating position weakens.

Italy is trying to balance this mechanism by formalising the process of content pricing and the role of the regulator. If the CJEU decides that this is compatible with EU law, other member states may follow the same path.

For the IT industry, media technology providers and the platforms themselves, this is a potential signal of change in collaboration models and content monetisation. It is not just regulation that is in play, but the entire information distribution ecosystem in Europe.

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