We're offering a 2-week trial of WrapPRO for $1. If you’ve been wanting to check out our full coverage, now’s the time. Greetings!Does Netflix have a legal problem in Europe? That question arises after a court in Italy ruled against the streaming giant, ordering it to pay up to $2.3 billion in refunds and damages to consumers - and roll back the four price hikes it implemented over the last decade. Based on our math, the country's 5.4 million subscribers times an average refund of €375 would equate to €2 billion, or about $2.3 billion. That could just be the start of legal headaches for Netflix, says Braden Perry, a regulatory and government investigations attorney. He told our Lucas Manfredi that Germany and Spain's consumer protection groups have taken similar legal action, and Poland has opened an investigation as well. “The practical takeaway is that Europe is now the real legal risk for Netflix's pricing model, while U.S. subscribers are unlikely to see anything comparable absent a significant shift in federal consumer protection law,” Perry said. That's a concern given how important the European market is for Netflix. The Europe, Middle East and Africa, or EMEA, region represents about 101 million users, or nearly a third of its total 325 million global subscribers. While it doesn't break out Europe specifically, Germany, France and Italy are major markets for Netflix, as is the U.K., although it isn't part of the EU. Stefano Bonini, an associate professor of finance at Stevens Institute of Technology, told Manfredi that he's "absolutely certain" that the European Commission would look into the matter, even if it could take a while for a case to build. A Netflix spokesperson told TheWrap it would appeal the court’s decision, adding that it takes consumer rights “very seriously” and believes its terms have “always complied with Italian laws and practice." But Netflix may also need to keep an eye on the rest of Europe. Roger Cheng Before we move on, be sure to follow me on my socials linked below for the latest updates. DMs are open for tips.    | ||||||||||||
