The Technological Environment of the German Media Landscape

The German media landscape is significantly shaped by the technological environment, which has an influence on government relations and media interactions. Understanding this environment is crucial to grasping the legal and market dynamics that determine media ownership and influence in Germany. But what is the interplay between technology and media?

Government-tech company relations

The German government has a multifaceted relationship with tech companies, primarily to ensure compliance with local laws and how companies handle sensitive data. Tech companies must comply with strict data protection laws such as the European General Data Protection Regulation (GDPR), which imposes high EU-wide standards for data protection and security. This compliance ensures that user data is handled responsibly and reflects Germany's commitment to protecting its citizens' digital privacy.

Data protection is particularly important to Germans. During the Nazi and GDR eras, data was systematically collected and misused to monitor and control people. These experiences have led to a deep-rooted mistrust of state and corporate data collection. Consequently, the protection of personal data is of great importance in Germany and is considered a fundamental right enshrined in the constitution, namely the right to informational self-determination

Platforms such as Facebook and YouTube have set up mechanisms to report and remove harmful content, often in collaboration with German authorities. However, this relationship is not without tension, as occasional debates about data access and surveillance illustrate the delicate balance between security and privacy.

The EU plays a central role in regulating the media landscape in Germany, particularly through directives and regulations such as the Audiovisual Media Services Directive (AVMSD), the Digital Services Act (DSA), the General Data Protection Regulation (GDPR) and the European Media Freedom Act (EMFA). The AVMSD aims to create a level playing field and ensure media pluralism, while the DSA promotes a safe digital space by regulating platforms. The GDPR harmonises data protection in the EU and has far-reaching implications for the media industry. The EMFA protects media freedom and pluralism by ensuring that media can operate without undue pressure. Germany has actively participated in the design and implementation of these regulations to promote a harmonised and safe media space in Europe.

Relationship between media and technology companies

The relationship between media and tech companies in Germany is characterised by interdependency and collaboration. Social media and search engines such as Google and Facebook serve as important distribution channels for news content and significantly influence how information is consumed. These platforms use algorithms to select and prioritise content in search suggestions and results. They thus shape public discourse and media consumption habits.
Media companies benefit from the wide reach of technology platforms through joint monetisation models such as advertising revenue and sponsored content. However, this dependency also raises concerns about media independence, as algorithmic bias and platform policies can influence editorial decisions and the visibility of content. For example, content is prepared by editorial teams in such a way that it achieves the widest possible reach on Google and social networks. On the other hand, content is sometimes adapted to comply with providers' advertising friendliness or child protection guidelines. For example, female breasts are not shown, and swear words and terms such as “sex” are avoided.
In Germany, as in other countries, some media outlets have emerged with Facebook & Co. and have also had to struggle when the tech giants' prioritisation has changed. A good example of this is BuzzFeed or Vice, which was discontinued in Germany. One of the reasons for the demise of so-called “millennial media” is likely to be that many models no longer work as well without Facebook traffic.

Regulation of tech companies

Tech companies in Germany are subject to strict regulatory oversight to ensure fair competition and consumer protection. The Federal Network Agency and the Federal Cartel Office oversee telecommunications and competition regulations. These agencies ensure that telecommunications operators and internet service providers (ISPs) adhere to market standards and do not form monopolies.
Regulation also extends to social media, with laws such as the Network Enforcement Act (NetzDG) forcing platforms to quickly remove illegal content. These measures aim to create a safer digital environment while promoting fair competition among tech companies.

Major players in the German tech landscape

The German tech landscape is characterised by significant players in both the internet and mobile sectors, as well as in the telecommunications sector. Large internet companies such as Google, Facebook and YouTube dominate the digital content distribution space and offer extensive reach and user engagement.
In the telecommunications sector, Deutsche Telekom is a major player offering both fixed-line and mobile services. Vodafone and Telefónica Germany (O2) are also significant players, offering comprehensive mobile and internet services. These companies have local branches and offices and make a significant contribution to the German economy.
Deutsche Telekom AG has a diverse shareholder structure: institutional investment companies hold 50.9 per cent of the shares, private investors own 16.8 per cent, the KfW banking group, a state-owned development bank, owns 14 per cent, the federal government directly owns 13.8 per cent of the shares and Softbank owns 4.5 per cent.
Vodafone Germany is a subsidiary of Vodafone Group Plc, which is based in the United Kingdom. The main shareholders of Vodafone Group Plc are the Emirates Investment Authority with 14.25 per cent of the shares and Liberty Global Holdings Ltd. with 5.018 per cent.
Telefónica Germany is a wholly owned subsidiary of Telefónica S.A., a Spanish telecommunications company. The company is owned by a large number of shareholders, including both private and institutional investors. The shareholder structure is broadly diversified, and there are no dominant shareholders controlling the company.

Disparities between urban and rural areas in broadband expansion

By the end of 2023, almost three quarters of German households had access to gigabit internet with speeds of up to 1000 Mbit/s. Compared to 2019, gigabit coverage has improved by more than 30 per cent. Over 93 per cent of households can book internet tariffs with more than 100 Mbit/s. No rural district in Germany achieves full gigabit coverage. Only nine districts have coverage of over 90 per cent. Speeds of 1000 Mbit/s are not available in 28 districts. The differences between urban and rural areas have increased in recent years.
Digital literacy in Germany depends heavily on the availability and quality of broadband internet. In urban areas, coverage is generally better, which facilitates access to digital educational resources. In rural areas, on the other hand, people often have to make do with slower connections, which makes it more difficult to access digital services and education.
The urban-rural gap in broadband coverage remains a major issue. Despite government funding programmes, the gap between urban and rural areas has not been closed. Network operators are largely responsible for broadband expansion without government funding, and fibre-optic expansion is particularly challenging.

Relationships between tech companies and government or the media

Large tech companies in Germany have a complex relationship with the government, characterised by compliance with local laws and cooperation on data handling. Google and Facebook, for example, have been under scrutiny for their data protection practices and have adapted their activities to meet the requirements of the GDPR. In addition, these companies often work with the authorities, more or less willingly, to address issues such as online extremism and cybercrime.
Technology companies significantly influence the media through algorithm-driven content distribution and monetisation models. Social media platforms support media companies by increasing their reach, but also benefit from user engagement and advertising revenues. This symbiotic relationship highlights the interdependence between media and technology in the digital age.
The German telecommunications market shows a strong preference for mobile services, with mobile communications ahead of fixed-line services. There are around 38.6 million private and business telephone connections in Germany in the fixed-line network and 185 million in mobile communications. The increased use of mobile devices is also affecting the way media is used. Access from smartphones usually accounts for well over half, which in turn also influences the type of content that is consumed. Texts are becoming shorter and more structured, and online presences are being optimised for mobile use overall.
In terms of revenue, the market for electronic communications in Germany is substantial. Leading telecommunications operators generate significant sales revenues and contribute to a highly competitive market environment. According to Statista, the fixed-line market in Germany will reach a sales volume of around 26.9 billion euros by 2023, not including cable connections. Deutsche Telekom dominated the market with sales of around 16.5 billion euros. The remaining competitors together generated a turnover of around 10.4 billion euros.

Use of social media in Germany

Social media plays a central role in the German digital ecosystem. Facebook remains a dominant player with 33 per cent daily or weekly use according to the ARD-ZDF-Onlinestudie 2023, while Instagram (35 per cent), TikTok (15 per cent) and Snapchat (13 per cent) also have significant market shares. These platforms are integral to the dissemination of information and public engagement, and shape the media consumption habits of millions of Germans. For 39 per cent of the population, they are the first port of call for news at least once a week.
Although best known as a messaging service, WhatsApp is thought to be the most widely used social media application in Germany, with almost three quarters of internet users on the platform.
The technological environment in the German media landscape is a dynamic and evolving space characterised by regulatory frameworks, government relations and the interplay between technology companies and media companies. Understanding this environment is crucial to grasping the complexities of media ownership and influence in Germany, as technology continues to define how information is produced, distributed and consumed.

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