The regulation of digital media is having an impact on the automotive industry. In 2024, the introduction of the EU Digital Services Act (DSA) has caused legal teams in the automotive industry when implementing the new rules into connected vehicle ecosystems. Medienstaatsvertrag (MStV) is a German regulation that regulates obligations and rights of broadcast, digital service and telemedia providers - at first glance, a regulation that should have little significance for the automotive industry.
However, little noticed there has been a dispute between the German Central Supervisory Commission (ZAK) and car manufacturers over whether and how “in-car entertainment systems” shall be regulated by MStV, for years. The conflict became particularly controversial when the ZAK classified the Tesla Media Player as a media platform and issued an official notification against Tesla.
At the same time, some of the questions which have been in scope of the dispute became subject of a court ruling of Administrative Court of Berlin (VG Berlin). The court has referred the question of whether the transparency obligations of the MStV are compatible with EU law to the European Court of Justice (ECJ) for a preliminary ruling. The ECJ's decision could have far-reaching consequences for the entire automotive industry.
The following Q&A outlines the key issues and background to this matter and why this issue is and will remain a key topic for carmakers and their digital vehicle services and features in the future.
1. What is MStV?
The MStV contains basic provisions for the regulation of broadcasting and telemedia in Germany. It regulates the responsibility, licensing requirements and supervision of traditional broadcasting and telemedia services (e.g. television and radio) as well as digital platforms (e.g. streaming services, social media platforms, etc.). The aim is to create fair competitive conditions, to ensure diversity of opinion and media and to adapt media services to the digital age by including digital media providers, platforms and intermediaries in the regulation. The aim is to ensure greater transparency, fairness and consumer protection in the digital media world and to ensure that very large platform operators in particular take more responsibility for their media impact on society.
2. Why would this be relevant for the automotive industry?
In addition to the much-discussed provisions of the DDG and the DSA, the MStV contains various transparency obligations and provisions regarding the findability of a "user interface" or the allocation of and access to a "media platform".
So far, these have not played a major role in the automotive sector. Recently, however, these provisions have taken on far-reaching significance for the design of media offerings in the in-car ecosystem. In a "landmark decision"1 of 3 April 2014, the ZAK, as the central body of the 14 state media authorities in Germany, classified so-called "in-car entertainment systems" of several car manufacturers as user interfaces within the meaning of Section 2 (2) No. 15 MStV. The "Tesla Media Player" was even classified as a media platform under Section 2 (2) No. 14 MStV.2 User interfaces enable the selection of media content such as broadcasting and telemedia. Media platforms bundle these contents into a complete offer.
3. What does this mean in practice?
If the media content provided in vehicles is classified as user interface and/or media platform, strict transparency requirements apply, which are comparable to those of the DSA. These can pose major implementation difficulties, especially for car manufacturers (cf. Sections 78-90 MStV). Infringements can lead to fines of up to EUR 500,000.
With this decision, "in-car entertainment systems" are subject to media regulation for the first time and are now in the focus of the regulatory authorities as they could influence media diversity by favouring or restricting offerings.3
The decision is controversial, not least because the provisions of the MStV (§§ 78-96 MStV in conjunction with § 1 (8) MStV) could violate European law.4
Section 1 (8) MStV states that German law applies to user interfaces and media platforms if they are intended for use in Germany (so called “marketplace principle”). The transparency obligations of the MStV could therefore breach the “country of origin principle” enshrined in the E-Commerce Directive (2000/31/EC). According to this principle, an offer of services is only subject to the legal rules and requirements of the Member State in which the company making the offer of services is established.
The transparency requirements of the DSA, which are applicable since 2024, further intensify the problem of the compliance of the MStV with EU law.
The ECJ must now clarify the question of the EU compatibility of certain provisions of the MStV as a result of a reference decision from the Administrative Court of Berlin5 in the context of a preliminary ruling procedure in a dispute concerning the applicability of the transparency obligations under Section 93 MStV to a company established in another EU country.
Whether the ECJ will allow exceptions to the “country-of-origin principle” and whether, in addition to the DSA, there will still be national scope for ensuring media diversity is a question that the automotive industry in particular is eagerly awaiting.
4. What should car manufacturers do?
The requirements for media platforms according to MStV are particularly demanding and costly to implement. In the future, car manufacturers will do their utmost to configure their services in such a way that they do not fall into the latter category. It remains to be seen how the ECJ and, depending on the outcome of the case, the national media authorities will position themselves on the contentious issues. However, the disputes over media regulation shows for once that the automotive industry is not immune to regulatory scrutiny and complaints about vehicle design. It also shows that connected vehicle ecosystems can be subject to legal requirements from a wide range of regulatory areas, which in turn develop a complex interplay that is not readily apparent at first glance. The industry should keep a close eye on media regulation in the automotive industry and keep the issue in mind for future products and developments.
1 mabb press release, available at: https://www.mabb.de/uber-die-mabb/presse/pressemitteilungen-details/lokale-radiovielfalt-im-auto-sichern (accessed on 15 January 2025).
2 Decision of the Berlin-Brandenburg State Media Authority against Tesla Motors Netherlands B.V. of April 2, 2024, p. 4. The decision is available at: https://fragdenstaat.de/anfrage/in-car-entertainment-systeme-1/900759/anhang/24-04-29-ifgbescheid.pdf (accessed on January 15, 2025).
3 mabb press release (fn. 30).
4 Cf. in this regard the ECJ judgment of November 9, 2023 – C-376/22 (Google Ireland Limited ua/Kommunikationsbehörde Austria (KommAustria)) on Austrian law.
5 Cf. VG Berlin, decision of December 17, 2024, AZ 32 L 221/24.
