Netflix’s price hikes may have provided the company with more revenue, but that won’t be the case in Italy.
A Rome court ruled that Netflix’s price hikes for subscribers in Italy in 2017, 2019, 2021, and 2024 were unlawful. As a result, Netflix was ordered to refund affected subscribers in Italy by up to 500 euros (~$576), based on what plan they chose.
Italian consumer advocacy group Movimento Consumatori argued the price hikes violated Italy’s Consumer Code. According to the group, Netflix did not provide customers with valid justifications for the price hikes, making them unlawful.
Netflix has 90 days to inform current and former subscribers through email, physical mail, its website, and Italian newspapers of their ability to receive a refund. If it does not, it faces a financial penalty of 700 euros per day.
Netflix was also ordered to “reduce the prices of its current subscriptions by an amount equal to the unlawful increases.” Movimento Consumatori said it will launch a class-action lawsuit if the company does not reduce prices and refund customers. Netflix said it is appealing the ruling.
This could prove to be a bellwether case, as it opens the doors for other countries in the European Union to take on Netflix over the same concerns.
Leave a Reply