Netflix Italy: Court declares price increases invalid

The price increases that Netflix has imposed on its Italian subscribers for seven years are illegal. A court in Rome ruled this and ordered the Italian branch of the US streaming company to refund amounts paid unfairly. The Italian consumer organization Movimento Consumatori (MC) had filed the lawsuit.

The court in Rome upheld MC's lawsuit against Netflix Italia, declaring the contract clauses that allowed price increases from 2017 to 2024 to be unfair and therefore invalid. The clauses violated the Italian Consumer Protection Act by allowing changes without a valid reason in the contract, according to the consumer advocates in a statement on the court ruling. The court stated that the unilateral subscription price increases by Netflix in 2017, 2019, 2021, and November 2024 were therefore illegal, with the exception of increases for contracts concluded after January 2024.

Entitlement to price reduction and refund

According to the ruling, every subscriber is entitled to a reduction in the current subscription price, a refund of amounts paid unfairly, and, if applicable, damages. Consumers who have canceled their subscription over time are also entitled to a refund.

According to MC, the court decision affects millions of consumers. Estimates suggest that the number of Netflix subscribers in Italy has increased from 1.9 million in 2019 to around 5.4 million in October last year. "For the Premium subscription, the illegal price increases from 2017, 2019, 2021, and 2024 currently amount to a total of 8 euros per month, for the Standard subscription, a total of 4 euros per month," explained MC's lawyers. "A Premium customer who has paid for Netflix continuously since 2017 is entitled to a refund of around 500 euros, a Standard customer to around 250 euros."

The ruling also obliges Netflix to reduce the prices of its existing subscriptions by the amount of the illegal increases. "If Netflix does not immediately reduce prices and compensate customers, we will file a class action lawsuit to ensure that all users receive a refund of the amounts paid unfairly," said Alessandro Mostaccio, President of Movimento Consumatori.

Appeal announced

In a statement, Netflix announced that it would appeal the court's decision. The news agency Reuters reports. "We take consumer rights very seriously and are convinced that our terms and conditions have always been in compliance with Italian law and common practice," the company said.

Netflix has just increased its subscription prices again in its most important market, the USA – for the second time since the beginning of 2025. In Germany, Netflix's last price increase was two years ago. The Standard subscription with ads costs 5 euros, without ads 14 euros per month. The Premium subscription costs 20 euros per month; additional members cost 4 or 5 euros per month depending on the basic subscription. Compared to the United States, prices in Germany are still relatively low. It remains to be seen whether and when Netflix will further increase its prices in Germany and Europe.

(akn)