Trump demand leads Israel to scrap plan to force Netflix, Apple and Disney+ to fund l

The Ministry of Communications has removed from the draft communications law a clause that would have required foreign streaming services to transfer part of their revenue in Israel toward the production of locally produced content, following a directive from U.S. President Donald Trump. The move was revealed on Sunday by Communications Minister Shlomo Karhi.

A special Knesset committee is currently discussing the Ministry of Communications’ draft broadcasting law ahead of its second and third readings. Most of the public debate around the bill has focused on the new, and politically contentious, regulatory framework it seeks to impose on Israeli broadcasters. In addition, the bill aims to subject international streaming companies such as Netflix, Apple, Disney+ and HBO Max, which currently operate in Israel with minimal regulation, to partial regulatory oversight.

Niv Sultan in Apple TV series Tehran.

(Photo: Apple TV/ Nikos Katsaros)

Specifically, the bill originally stipulated that any “international content provider” generating more than NIS 40 million in annual revenue in Israel would be required to invest 6.5% of that revenue in financing or producing local premium content. The clause was intended to create a more level playing field between Israeli companies and international players and was expected to increase investment in original productions by millions of shekels.

However, during Sunday’s committee discussion, Karhi surprised lawmakers when he announced that his ministry had removed the clause from the draft law, according to him, not by choice.

“Our professional position remains that it should be included in the law,” Karhi said. “But there is a political decision by the prime minister that it be removed.”

The chair of the committee, MK Galit Distel Atbaryan, asked the minister to explain the reasoning behind the decision.

“There was a strong desire to hold discussions, and I tried to talk with all the relevant parties,” Karhi replied. “With officials in the Prime Minister’s Office, with the American Embassy, and with everyone who approached us on this matter. The answer was unequivocal: the prime minister decided to remove it because it was a demand that came from the president of the United States.”

Karhi’s remarks caused an uproar in the committee. Several participants noted that the bill had already been approved twice by the Ministerial Committee for Legislation.

“You’re saying something extraordinary, and it cannot be,” said one of those present. “There should be an obligation to invest in original productions. What are we, the 51st state of the United States?”

MK Efrat Rayten (Democrats) added: “The most shocking thing is that the U.S. president is determining broadcasting law here in the Knesset. What are we even sitting here for?”