Source: Fortune
Summary
An Italian court has ruled that Netflix’s subscription price increases in Italy between 2017 and 2024 were illegal and ordered the company to reimburse affected subscribers. The court found that Netflix violated Italian law by raising fees without providing valid justification to subscribers. Netflix has been given 90 days to comply and faces a daily fine of roughly €700 ($800) for delays. The company plans to appeal the decision.
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Netflix is facing a €500 ($577) refund per Premium subscriber and €250 ($288) per Standard subscriber in Italy. The company has 90 days to comply with the court’s decision. Netflix plans to appeal, stating that its terms have always been in line with Italian law and practices. This is not the first time Netflix has faced legal challenges over price hikes in Europe. The Netherlands, Germany, and Spain have also filed similar lawsuits.
The Italian court’s decision is a significant blow to Netflix’s pricing strategy in Europe. The company’s generic price-change clauses have been deemed void by courts in Berlin and Cologne. Netflix’s planned appeal may postpone enforcement, but the company’s reputation in Europe is already taking a hit.
Author: Evan Null
