In Italy, a court has issued a decision that could have huge implications for streaming services across Europe.
According to the court's decision (in Italian), Netflix's price increases in Italy between 2017 and 2024 were illegal, as they were not justified in any way.
According to the court, price increases made without any specified and explained reason are illegal, as they violate Italian consumer protection law. Netflix does not define any specific reason in its terms of service on the basis of which it can raise prices, but rather generally reserves the right to increase its prices in its terms of service. According to the court, this is not permissible; instead, the reasons for price increases must be clearly stated in the contract - for example, by describing that they are based on inflation or a similar, understandable reason.
Behind the decision is a lawsuit filed by the Italian consumer organization Movimento Consumatori, which demanded the annulment of Netflix's price increases and compensation for customers. The court ordered that the company must refund customers for unduly collected fees, the amount of which can in individual cases reach up to 500 euros for Premium subscribers and approximately 250 euros for Standard subscribers. The refunds apply to both current and former customers who have paid increased prices during the period in question.
In addition, the court obliged Netflix to restore subscription prices to 2017 levels, i.e., 9.99 euros per month for a Standard subscription and 11.99 euros per month for a Premium subscription. Netflix must also inform all its current and former subscribers about the decision and publish a notice in national newspapers. The court ordered Netflix to implement all required measures within 90 days.
The consumer organization Movimento Consumatori has announced that it will initiate a class action lawsuit if Netflix does not comply with the ruling and refund customers their money and lower prices. Netflix has approximately 5.4 million subscribers in Italy, so the refunds for the "overpayments" ordered by the court alone amount to hundreds of millions, even billions of euros.
Furthermore, the case could set a precedent more broadly in Europe if consumer organizations in other countries also start pursuing similar lawsuits against streaming services. According to Italian media sources (in Italian), this is only a first-instance court ruling, meaning Netflix can appeal the decision to an appellate court - and the decision is not legally binding until all levels of appeal have been exhausted (or Netflix decides not to appeal the ruling).
According to the court, price increases made without any specified and explained reason are illegal, as they violate Italian consumer protection law. Netflix does not define any specific reason in its terms of service on the basis of which it can raise prices, but rather generally reserves the right to increase its prices in its terms of service. According to the court, this is not permissible; instead, the reasons for price increases must be clearly stated in the contract - for example, by describing that they are based on inflation or a similar, understandable reason.
Behind the decision is a lawsuit filed by the Italian consumer organization Movimento Consumatori, which demanded the annulment of Netflix's price increases and compensation for customers. The court ordered that the company must refund customers for unduly collected fees, the amount of which can in individual cases reach up to 500 euros for Premium subscribers and approximately 250 euros for Standard subscribers. The refunds apply to both current and former customers who have paid increased prices during the period in question.
In addition, the court obliged Netflix to restore subscription prices to 2017 levels, i.e., 9.99 euros per month for a Standard subscription and 11.99 euros per month for a Premium subscription. Netflix must also inform all its current and former subscribers about the decision and publish a notice in national newspapers. The court ordered Netflix to implement all required measures within 90 days.
The consumer organization Movimento Consumatori has announced that it will initiate a class action lawsuit if Netflix does not comply with the ruling and refund customers their money and lower prices. Netflix has approximately 5.4 million subscribers in Italy, so the refunds for the "overpayments" ordered by the court alone amount to hundreds of millions, even billions of euros.
Furthermore, the case could set a precedent more broadly in Europe if consumer organizations in other countries also start pursuing similar lawsuits against streaming services. According to Italian media sources (in Italian), this is only a first-instance court ruling, meaning Netflix can appeal the decision to an appellate court - and the decision is not legally binding until all levels of appeal have been exhausted (or Netflix decides not to appeal the ruling).
