EU Court Limits YouTube's Liability Shield for Commercial Partnerships
AI-generated image · US National Wire
A CJEU ruling suggests Google cannot claim neutral intermediary status after vetting creator content for revenue-sharing deals.
The Court of Justice of the European Union (CJEU) has ruled that Google may be unable to use intermediary liability protections for YouTube content it reviews as part of commercial partnerships with creators, according to reporting from The Register.
The case originated from a €750,000 fine issued in 2022 by Italy's communications regulator against Google Ireland. The fine concerned YouTube videos that promoted online gambling. Before establishing a revenue-sharing agreement to place pre-roll ads on the creator's videos, Google conducted a review of the channel's content. Italy's regulator argued that this review process invalidated Google's claim of being a neutral intermediary.
While liability exemptions typically apply when a provider has no knowledge of or control over stored information, the CJEU found that the exemption does not apply when a platform operator agrees to commercial terms and performs an examination of a channel's metadata, main themes, or most-viewed and newest videos.
As a result, Google's ability to rely on its "intermediary service provider" defense is limited in instances where it has specific knowledge of content through commercial vetting. The dispute now returns to Italy's Council of State for a final decision. A Google spokesperson told The Register the company is disappointed by the decision and will present its arguments before the Council of State.