CJEU backs Italy’s press-compensation scheme
The EU’s top court has found that an Italian scheme to compensate press publishers for use of their material online by social-media and other technology companies is permissible under EU law.
The ruling arose from a case taken by social-media giant Meta against a decision by the Italian communications regulator (AGCOM).
Meta had claimed that the Italian legislation establishing the system infringed the EU framework on publishers’ rights in the Digital Single Market.
The Italian court than referred the issue to the Court of Justice of the European Union (CJEU) for a ruling on whether the scheme was compatible with EU law.
Exclusive rights
In its decision today (12 May), the CJEU noted that the EU Directive on Copyright in the Digital Single Market aimed to confer on publishers exclusive rights to reproduce their press publications, and make them available to the public.
It also gave member states a margin of discretion to guarantee the implementation of these measures.
The judges found that a right to fair compensation for publishers was consistent with EU law, provided that that payments constituted consideration for authorising their publications to be used online.
It added that publishers must also be able to refuse such authorisation or to grant it free of charge. In addition, the judges stated, no payment may be required from suppliers when they do not use those publications.
Fairness
“The obligations imposed on providers to enter into negotiations with publishers, without limiting the visibility of content during that period, and to provide the data necessary for calculating the remuneration are also permissible,” the court found.
It said that these obligations could ensure the fairness of negotiations and contributed to the objective of protecting publishers.
“Similarly, the powers granted to AGCOM by the Italian legislation are permissible, in so far as they seek to ensure the effective implementation of the rights conferred on publishers,” the judgment stated.
Limitation ‘justified’
The CJEU found that the obligations, along with AGCOM’s powers to impose penalties, did constitute a limitation on the technology companies’ freedom to conduct business.
“That limitation appears to be justified and proportionate in relation to the objectives of EU law of achieving a well-functioning and fair market place for copyright, and allowing publishers to recoup the investments required by the production of their publications,” it added.
The case now goes back to the Italian court for a determination.