Meta Platforms lost a legal challenge on Tuesday against Italian rules requiring online platforms to compensate publishers for using news snippets, after Europe’s highest court backed the powers of Italy’s communications regulator and reinforced publishers’ rights under EU copyright law.

The ruling by the Court of Justice of the European Union supports a system introduced by Italy’s communications authority AGCOM that requires digital platforms to negotiate payments with publishers for the online use of press content. Reuters reported that Meta had argued the measures conflicted with EU copyright legislation and unlawfully expanded publishers’ rights.

In its judgment, the Luxembourg-based court said “a right to fair compensation for publishers is consistent with EU law”, provided the payments are linked to publishers authorising online use of their material. The court added that publishers must retain the right to refuse permission or allow content to be used free of charge.

According to a court press release, the judges found that obligations imposed on platforms to negotiate with publishers, maintain content visibility during talks and provide data needed to calculate compensation were justified because they helped create “a well-functioning and fair marketplace for copyright”.

The case arose after Meta challenged AGCOM’s 2023 decision setting criteria for calculating compensation owed to publishers under Italy’s implementation of the EU Copyright Directive. Italy’s Lazio Regional Administrative Court referred questions to the EU court over whether the national framework complied with EU law and protections for business freedom.

A Meta spokesperson said the company would “review the decision in full and engage constructively as the matter returns to the Italian courts”. Reuters reported that the case is likely to influence broader disputes between publishers, technology companies and artificial intelligence developers over the commercial use of copyrighted material.

The court said digital platforms held a stronger negotiating position because they controlled data needed to assess the economic value of news content online. Judges added that requiring platforms not to reduce publishers’ visibility during negotiations could prevent pressure being placed on media organisations.

The dispute forms part of a wider European effort to strengthen publishers’ rights as traditional media groups face declining revenues and competition from digital platforms. Reuters said similar copyright disputes involving AI training data have triggered litigation against companies including OpenAI and Anthropic.

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