A recent decision by the European Commission, in which ALIA played a part, confirms that service providers established in Luxembourg can continue to rely on a stable European framework, even when their services are primarily aimed at an audience in another Member State.
In January 2026, Hungary requested permission to apply its own rules to CLT-UFA, a provider established in Luxembourg whose services, RTL Kettő and RTL+, are primarily aimed at a Hungarian audience. According to the Hungarian authorities, the company had established itself in Luxembourg to avoid national rules which the authorities considered to be stricter, particularly regarding sanctions and the protection of human dignity.
The country-of-origin principle upheld
This request sought to derogate from the country-of-origin principle, which forms one of the cornerstones of European regulation of audiovisual media services. Under this principle, a provider is subject to the rules of the Member State in which it is established, even if its services are primarily aimed at an audience in another country.
The Audiovisual Media Services Directive (AVMSD) provides for exceptions, but only in limited circumstances and subject to strict conditions.
In its opinion of 18 March 2026, the European Board for Media Services (Media Board[1] ) considered that Hungary had not demonstrated the existence of stricter or more detailed rules justifying such a derogation. The European Commission reached the same conclusion in its decision of 8 May 2026. It considered that the conditions for derogating from the country-of-origin principle had not been met.
These conclusions are in line with the analysis put forward by ALIA, in its capacity as the competent authority of the Member State of establishment.
An important signal for suppliers established in Luxembourg
This decision confirms that service providers established in Luxembourg can continue to rely on a stable and predictable European regulatory framework. It also reaffirms that exceptions to the country-of-origin principle must be interpreted strictly.
Finally, the case illustrates ALIA’s role in European proceedings that may affect providers falling within its remit and in maintaining a consistent regulatory environment for the media sector established in Luxembourg.
[1] A body at European level bringing together national media regulators and promoting cooperation between them