Netflix has been defeated in a legal battle, leading to the nullification of its recent subscription fee increases, with some customers due refunds.
Just two weeks after Netflix implemented its latest price rise – the second in just over a year on March 26 – the company faced a setback. In the U.S., the pricing for its three plans now stands at $8.99 per month for the basic plan with ads; $19.99 for the standard ad-free plan; and $26.99 for the premium option.
Recently, a court in Rome has declared that the price increases Netflix introduced in Italy from 2017 to 2024 were illegal, supporting a consumer rights group that claimed the company breached local laws by elevating subscription fees without proper justification. Although Netflix intends to challenge the verdict, which is not yet enforceable, they stated:
At Netflix, prioritizing our members is key. We are committed to consumer rights and believe that our terms have consistently complied with Italian regulations and norms.
Understanding the Netflix Rome Court Decision
The consumer organization Movimento Consumatori applauded the court’s decision, pointing out that Netflix’s incremental pricing in Italy from 2017 to 2024 contradicted the national consumer code. This code stipulates that companies must not alter prices unilaterally without a valid, pre-stated reason.
Italy’s consumer protection laws are designed to curb arbitrary price increases by businesses, ensuring any changes are justifiable and equitable. The court also ruled that subscribers of Netflix Italia should receive a reduction in their future bills and refunds for any unjustified payments made previously.
Moreover, the court mandated the publication of its decision on the official Netflix Italia website and in major national newspapers. This is to inform consumers about the invalidation of the current contractual terms and their entitlement to refunds. Attorneys Paolo Fiorio and Riccardo Pinna, representing the consumer side, commented:
For the Premium Plan, the wrongful price increases in 2017, 2019, 2021, and 2024 amount to €8 ($9.22) per month, totaling about €500 ($577) for a Premium subscriber who has been continuously subscribed from 2017. For the Standard Plan, the total undue increase is €4 per month, totaling about €250 ($288) in refunds.
Netflix has been given 90 days to adhere to the court’s decision, after which it will incur a daily penalty of €700 (approximately $800) for non-compliance. However, the pending appeal from Netflix may delay or even stop the enforcement of this order.
Could the Rome Court Decision Affect Other Nations?
This ruling from Rome might pave the way for similar legal actions across Europe, where challenges to Netflix’s pricing strategy have been initiated in countries like Germany, the Netherlands, and Poland, although these have yet to yield significant results.
In May 2025, a Netflix user in Germany won a case in a regional court in Cologne, which decreed in his favor and mandated a refund for the price hike. This verdict, however, has not yet had widespread legal repercussions.
Ava Thornton is an entertainment journalist with a keen eye for the latest in Hollywood, indie films, and streaming trends.
Her work blends insider knowledge with a deep appreciation for storytelling.
