Background
This case reached the CJEU as a preliminary reference from an Italian court. Italian copyright law, implementing the EU Copyright Directive (Directive 2019/790, also known as the DSM Directive), established a framework through Italy’s communications regulator AGCOM requiring online platforms to negotiate fair compensation with press publishers for the use of their publications. Meta Platforms challenged this framework, arguing it went beyond what EU law permits.
The DSM Directive, adopted in 2019, created a new neighboring 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 aimed to address the “value gap” — the disparity between the revenues that digital platforms generate from hosting news content and the compensation publishers receive.
The Court’s Holding
The Grand Chamber ruled that EU law permits member states to require online platforms to provide fair compensation to press publishers when their platforms display snippets or previews of news articles. The court clarified the scope of Article 15 of Directive 2019/790, finding that it protects journalistic works and establishes obligations for information society service providers to negotiate licensing terms with rights holders.
The decision balanced platform freedom with publisher compensation rights in the digital ecosystem, holding that Italy’s AGCOM framework for negotiating compensation is compatible with the directive’s objectives. The court emphasized that the directive’s press publisher right is designed to ensure the financial sustainability of press publishing in the digital age.
Key Takeaways
- EU member states may require online platforms to pay fair compensation to press publishers for displaying news snippets or previews, provided the framework is compatible with Directive 2019/790.
- The press publisher right under Article 15 of the DSM Directive creates an obligation to negotiate licensing terms — platforms cannot simply use news content without authorization or compensation.
- National regulatory bodies like Italy’s AGCOM can establish frameworks for negotiating these compensation arrangements, as long as they stay within the directive’s boundaries.
- This ruling strengthens the hand of press publishers across the EU in negotiations with major tech platforms over the use of their content.
Why It Matters
This Grand Chamber ruling is a landmark for the European news publishing industry. It confirms that the EU’s 2019 copyright reform gives publishers real leverage to demand payment from tech giants like Meta when those platforms display news snippets, headlines, or previews that drive user engagement and advertising revenue. For global technology companies, the ruling means they must build licensing and compensation frameworks into their European operations. The decision also has implications beyond Europe: countries like Australia and Canada have passed similar “link tax” or “news bargaining” legislation, and the CJEU’s endorsement of the publisher compensation model may encourage other jurisdictions to follow suit. For press publishers worldwide, it validates the principle that aggregation of news content by platforms is not free riding — it triggers compensation obligations.