He Court of Rome has just dealt a serious blow to Netflix: it has declared illegal the price increases applied by the platform between 2017 and 2024, after a lawsuit filed by the consumer association Consumatori Movement. The ruling recognizes the right of users to request a refund or reduction of their current rates. Subscribers of the Premium plan who have been with the platform since 2017 could receive up to 500 euros, while those of the Standard plan could claim about 250.
The underlying problem is not that Netflix raised prices, but how it did it. The court held that the clauses were abusive because they allowed changes without specifying a valid reasoncontravening the National Consumer Code. In practice, the platform gave 30 days' notice and allowed cancellation, but that is not enough according to Italian justice: users should have known from the beginning under what specific conditions the service could become more expensive.
What does this mean for the rest of Europe?
Netflix has announced that it will appeal the decision, stating that its conditions have always respected Italian regulations. But the reputational damage has already been done, and the economic magnitude of the ruling is considerable: it is estimated that in Italy there are 5.4 million subscribersso the potential bill for refunds could reach astronomical figures.
The most relevant thing, however, goes beyond Italy. The case is not unique: in the Netherlands, this movement in the Netherlands already claims exactly the same, denouncing that the Premium plan increased by 75% since 2015 without contractual justification. And they are not the first: in Germany several judges have already condemned Netflix for the same reason, and in Austria The platform reached a collective agreement to compensate its users. The European Union has especially robust consumer protection regulations, and this Italian precedent could encourage associations in other countries to follow the same path, not only against Netflix, but against Disney+, HBO Max or any other platform with similar policies.
Is it only a matter of time before Spanish subscribers can also complain about years of unexplained price increases?
