Netflix, Amazon Given Quotas for European Content - And A New Tax

Hey, look at the bright side! These are just like the rules in China and some other totalitarian regimes which the companies already have experience serving.

Admittedly without the market size or growth potential.JL

Jennifer Baker reports in ars technica:

To fund “European cultural content,” many national authorities impose a tax on broadcasters. The new rules clarify that they are free to extend that to Netflix, et al. The commission will also force on-demand video providers to ensure that at least 20 percent of their content is European in origin—of course that includes UK national content, so no one will be forced to watch French films.
As expected, the European Commission has nixed plans to impose blanket rules on Web-based platforms as part of its Digital Single Market plans—but Netflix, Amazon, and other on-demand video providers will face movie and TV quotas and a tax to help fund EU productions.
Vice president Andrus Ansip said that rather than onerous regulation, problems will be addressed “individually as they arise by sector.”
Although the commission wants to totally eliminate geoblocking for the purchase of online goods and services, for the time being, copyrighted audiovisual content will be exempt from the rules.
A raft of other measures aimed at creating a level playing field for online shoppers across the European Union have been rolled out, however. Brussels' digital economy commissioner, Gunther Oettinger, focussed on changes to the Audiovisual Media Services Directive (AVMSD)—essentially bringing it up to date for the modern world. And it's bad news for Netflix and Amazon.
“Up to now the directive has applied only to broadcasting TV services, but online streaming services, and video-sharing platforms (such as YouTube and Dailymotion) have been exempt,” he said. Not any more.
European TV broadcasters currently invest around 20 percent of their revenues in original content, but on-demand providers pump less than one percent into such productions, according to the commission. To fund “European cultural content,” many national authorities impose a tax on broadcasters. The new rules clarify that they are free to extend that to Netflix, et al.

Clarification needed on definitions around digital content, say MEPs.

The commission will also force on-demand video providers to ensure, as previously reported, that at least 20 percent of their content is European in origin—of course that includes UK national content, so no one will be forced to watch French films.
They will also be required to properly tag content that could be harmful to children, such as pornography, or glorified violence. Rules banning hate speech have additionally been extended to video sharing platforms and downloadable content.

More ads on normal broadcast TV

By contrast, rules on broadcast TV advertising have been loosened up. “We want to retain the 20 percent maximum advertising rule, but we want that to run from 7am to 11pm,” said Oettinger removing the obligation for broadcasters to cap adverts at 20 percent for each hour.
Elsewhere, the commission has set out plans to increase price transparency and regulatory oversight of cross-border parcel delivery services. “All too often people are blocked from accessing the best offers when shopping online, or decide not to buy cross-border because the delivery prices are too high or they are worried about how to claim their rights if something goes wrong,” said Ansip.
According to the commission, prices charged by postal operators to deliver a small parcel to another country are often up to five times higher than domestic prices, without a clear correlation to the actual costs. The new regulation will give national postal regulators the data to monitor cross-border markets.
However—contrary to some scaremongering critics—the new rules don't impose an obligation to deliver across the EU, and they exempt small businesses that fall under a national VAT threshold from certain provisions.

A brief history of a dominant Google's soul-searching competition battle in the EU.

Finally, the commission laid out a proposed revision of the Consumer Protection Cooperation Regulation to give more powers to national enforcement authorities. They will be able to request information from domain registrars and banks to detect the identity of suspect traders and order the immediate closure of websites hosting scams.
The commission is also publishing updated guidance on unfair commercial practices. Any online platform that qualifies as a "trader" and promotes or sells goods, services or digital content to consumers must make sure that its own commercial practices fully comply with EU consumer law. Meanwhile websites, like eBay, Etsy, or Gumtree, which bring shoppers and private sellers together, must state clearly where the rules on unfair commercial practices do not apply.
And—in a nod to the ongoing Google competition case—the commission said: “search engines would be required to clearly distinguish paid placements from natural searchresults.