Greer stated that a proposed tax on American companies contradicts the Turnberry Agreement, in which the EU pledged to eliminate “unjustified digital trade barriers,” not create new ones.
Republicans in Washington have recently criticized Canada’s streaming law, which mandates tech platforms to financially support domestic cultural production. In March, House Republicans proposed legislation for a U.S. trade investigation into Canada’s Online Streaming Act, claiming it unfairly targets American companies and could justify retaliatory tariffs.
Germany’s proposed law would compel streaming companies and broadcasters to invest at least 8% of their annual German revenues in domestic and broader European film and TV production or face financial penalties. Berlin also plans to nearly double public support for local productions to €250 million.
Finance Minister Lars Klingbeil defended the plan in February, stating it would provide “planning certainty for more investment in national and international productions” and send a “clear signal” for Germany’s media industry and “cultural diversity.”
Netflix opposed the move, with Wolf Osthaus, Netflix’s senior global affairs director in Germany, expressing concern that stricter regulations might hinder investments in ambitious projects, resulting in fewer productions, which would be detrimental to audiences and production locations.
This dispute adds tension to U.S.-German relations, following Merz’s accusation in April that Washington was “humiliated” by Iran, and U.S. President Donald Trump’s order to withdraw 5,000 U.S. troops from Germany at the start of May.
John Hewitt Jones contributed to this report.
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