Major tech companies challenge Belgium's creator compensation legislation in EU court.

      Google, Meta, Spotify, and Sony have brought Belgium before Europe’s highest court, claiming that the country's copyright law requires platforms to compensate creators significantly more than intended by the EU. On Tuesday, the four major tech companies appealed to the EU’s Court of Justice to address what they view as Belgium’s overreach in determining payments for news, music, and video shared online, as reported by Courthouse News.

      Belgium, supported by several EU governments, argues that the law ensures a fairer distribution of revenue for publishers and artists. The court now faces a key question: did Belgium accurately implement the EU’s 2019 copyright directive, or did it alter it?

      What Belgium added

      The directive was designed to allow publishers and creators to gain a larger share of the value generated by their work online. However, Belgium went further by introducing mandatory negotiations, disclosure requirements, and new obligatory payments for certain creators. The four companies contend that these additions exceed what EU lawmakers authorized.

      The heart of EU tech

      Google claims the law disrupts the existing balance, having recently faced a record €4.1 billion fine from the EU, which it is currently appealing. A lawyer representing Google told the court that Google Search already has over 1,500 licensing agreements covering more than 5,500 press outlets. Additionally, YouTube compensates music companies and creators.

      According to Google, Belgium’s system forces obligatory payment negotiations and requires sensitive business information without first proving that a platform utilized the content. The requests also come from unusual sources; Google mentioned communications with various sectors like plumbing trade associations, gaming websites, podcast producers, and real estate platforms. “This places online service providers in a dilemma,” attorney Olivier Vrins told the court.

      Host or publisher?

      Meta raised a different concern, arguing that the Belgian law confuses the distinction between platforms that host content and those that generate it. Facebook asserted that it does not select which stories are displayed; rather, it's the users who do. “If not, every online platform would essentially be considered a user of the content uploaded by its users,” lawyer Benoit Van Asbroeck explained to the court.

      Meanwhile, Spotify and Sony challenged another provision, stating that Belgium grants authors and performers a mandatory top-up right even after they have licensed their work through record labels and collecting societies. The two companies warned that this could result in platforms paying twice for the same stream.

      Why it matters

      Belgium and its supporters, including France, Spain, Italy, Poland, and Germany, argue that the tech giants are missing the broader issue at hand. They contend that creators must negotiate against disproportionately powerful entities, and without additional protections, copyright rights hold little value in practice.

      The implications extend beyond Belgium. The court will determine how much latitude any member state has to impose stricter regulations than those from Brussels. Advocate General Maciej Szpunar is set to present his opinion on November 19, followed by a final ruling. The outcome will influence content pricing for every publisher and platform across Europe.