German Court Upholds Film Subsidy Law

Local cinema owners claim the levies are unfair because TV broadcasters are not required to pay an equivalent tax.

 

COLOGNE, Germany -- Germany’s administrative court has upheld the country’s film subsidy law, rejecting a suit by German multiplex owners who claimed it was unconstitutional.

The cinema owners object to compulsory levies they are required to pay to a subsidy pot which finances German films. They argued the levies are unfair because German TV broadcasters are not required to pay an equivalent tax.

A change to Germany’s film subsidy law last year closed that legal loophole and was sufficient to satisfy the court, which issued its ruling on Wednesday. If the suit had succeeded, it would have meant severe cuts in German film subsidies and a subsequent drop in local film production.

But the fight isn’t over yet. Even before Wednesday’s ruling, the exhibitor group said they are looking into other legal means to fight the law.

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