European Commission EVP Henna Virkkunen Talks Trump, Streamers, and AI

In a recent address, Henna Virkkunen discussed the European Union's renewed relations with the United States, particularly in the media and entertainment sectors. Her remarks come after the shelving of U.S. President Donald Trump's proposed 100% tariff on foreign films, a decision that significantly impacts European content distribution in the U.S. Virkkunen highlighted the importance of maintaining a balanced playing field for European creatives amidst the rise of global streaming giants. The European Commission is currently evaluating the Audiovisual Media Services Directive, which mandates that streamers offer a minimum of 30% European content to their subscribers and reinvest profits locally. This directive aims to bolster Europe's cultural sector in the face of digitalization and dominant online platforms.

Virkkunen also addressed the contentious issue of a digital tax, which has been a point of friction with previous U.S. administrations. Although a unified EU digital tax was dropped, individual countries like France and Italy have enacted national levies. The European Commission's decision to pause the tax reflects ongoing negotiations and the complexity of aligning member states on this issue. Virkkunen noted that discussions with the U.S. and within the EU are ongoing, emphasizing the need for a cohesive approach to taxing tech giants.

On the topic of artificial intelligence, Virkkunen presented the EU's Artificial Intelligence Act, a pioneering framework that sets standards for AI transparency, safety, and copyright. The Act is not yet in force, but companies like Google and Apple have already signed on to its code of practice. Virkkunen underscored the necessity of fair compensation for European content used in AI training, a critical point for maintaining the EU's rich cultural heritage. The act's enforcement will begin in 2026, but the groundwork is being laid now to ensure compliance and protect rights holders.

Virkkunen expressed optimism about AI's potential to revolutionize the creative industries. She envisions Europe as a hub for AI-driven innovation, where new technologies enhance rather than replace creative processes. Highlighting the Venice Film Festival's commitment to technological advancements, Virkkunen sees AI as a tool for filmmakers to explore new narratives and formats, broadening the horizons of traditional storytelling.

Despite the challenges, Virkkunen remains hopeful about the future of EU-U.S. technology partnerships. She emphasized the importance of continued dialogue, particularly as AI and digital platforms reshape global media landscapes. With collaborative efforts, Virkkunen believes Europe and the U.S. can lead in setting ethical standards and fostering innovation that respects cultural diversity and creators' rights.