Background
The Digital Single Market (DSM) Copyright Directive (2019/790) introduced a new neighbouring right for press publishers under Article 15, giving them the right to authorize or prohibit online use of their press publications by information society service providers. The Directive left member states discretion in how to implement this right.
Italy implemented Article 15 through national legislation that went beyond the Directive’s minimum requirements, establishing a framework under which online platforms must pay fair compensation to press publishers when they display news snippets — short extracts of articles — on their platforms. AGCOM, Italy’s communications regulator, was tasked with setting criteria for determining fair compensation.
Meta Platforms Ireland challenged the Italian implementation, arguing it exceeded what the Directive permitted. The case was referred to the CJEU for a preliminary ruling by the Lazio Regional Administrative Court.
The Court’s Holding
The Grand Chamber ruled in favor of the press publishers and the Italian regulatory framework. The Court held that Article 15 of the DSM Directive does not preclude member states from adopting national measures that go beyond the Directive’s baseline, provided those measures are consistent with the Directive’s objectives. Italy’s requirement that platforms pay fair compensation for the use of news snippets was found to be within the margin of discretion afforded to member states.
The ruling confirms that the press publishers’ right under the DSM Directive is not merely an opt-in licensing mechanism but can be enforced through national regulatory frameworks that mandate compensation. The case returns to the Lazio Regional Administrative Court for final disposition consistent with the CJEU’s guidance.
Key Takeaways
- Member states can go further than the DSM Directive baseline. The CJEU confirmed that Article 15 sets a floor, not a ceiling, allowing national legislatures to strengthen press publishers’ rights beyond the Directive’s minimum requirements.
- Mandatory compensation frameworks are permissible. National laws that require — rather than merely enable — platforms to pay for news snippets are consistent with EU law, provided they serve the Directive’s objectives.
- Major platforms face expanding regulatory obligations. Meta, Google, and other platforms that display news content across the EU now face a patchwork of national implementations with varying compensation requirements, with the CJEU blessing more aggressive approaches.
Why It Matters
This ruling has significant implications for the business relationship between tech platforms and the news industry across Europe. By blessing Italy’s more aggressive implementation of Article 15, the CJEU has opened the door for other EU member states to adopt similarly robust mandatory compensation frameworks. For platforms like Meta and Google that aggregate and display news content, the ruling increases the likelihood of mandatory payment obligations across multiple EU jurisdictions.
The decision arrives at a time when the economic sustainability of professional journalism is a pressing policy concern worldwide. By affirming that national governments can require platforms to compensate publishers for news snippets — not just give publishers a right to negotiate — the CJEU has provided a legal foundation that could reshape how digital advertising revenue is distributed between platforms and content creators.