Although there is a growing body of research in EU media policy, critical analyses into the structures, processes, efficacies and controversies of EU media policy formulation, implementation and practice is sparse. This chapter will address this void. It provides a synoptic overview of the legislative framework of the EU’s audiovisual and media policy and looks to some of the most important challenges it is facing with regard to maintaining an effective aggregate transnational policy universe that keeps up to its promise of promoting cultural diversity and the economic prosperity of media in Europe. Certainly, this is a daunting task given the changing nature of current environmental challenges on the media industries at large, notably through digitization, convergence, globalization, market concentration, audience fragmentation and intensified competition through digitally based companies such as Google, Apple, Facebook and others as significant content and service providers diversifying into and attacking the traditional media domains from outside the EU. This chapter further critically reviews some selected challenges as a theoretical undertaking.