Netflix Fined €4.75 Million for GDPR Violations in the Netherlands
Amsterdam, Thursday, 19 December 2024.
The Dutch Data Protection Authority fined Netflix €4.75 million for failing to provide clear information on customer data usage, emphasizing the need for transparency in data practices.
Background of the Violation
Between 2018 and 2020, Netflix failed to adequately inform its customers about crucial aspects of personal data handling [1][5]. The investigation, which began following a complaint filed by Austrian privacy foundation ‘None of Your Business’ (noyb) in 2019, revealed that Netflix was unclear about why data was being collected, how long it was stored, and whether it was shared with third parties [1][4]. The case was handled by the Dutch Data Protection Authority since Netflix’s European headquarters are located in Amsterdam [1].
Broader Impact on Tech Industry
This enforcement action comes at a time when major streaming services face increased scrutiny over their data practices. For Netflix, whose global revenue reached $33.723 billion in 2023 [4], this fine represents a small fraction of its earnings but sets an important precedent [5]. Other major platforms including Amazon Prime, Apple Music, and YouTube are currently facing similar unresolved complaints related to GDPR compliance [5].
Legal Process and Response
The fine was announced on December 17, 2024 [4][5], following a lengthy investigation process that took almost five years to conclude. According to Stefano Rossetti, a data protection lawyer at noyb: ‘It took almost five years to obtain [this decision], and in a very simple case’ [4]. While Netflix has already improved its privacy statement and information provision to customers, the company has filed an objection against the fine [1][6].
Future Implications
This case highlights the growing importance of GDPR compliance in the tech industry. With potential fines reaching up to 4% of global annual revenue for severe violations [5], companies are under increasing pressure to ensure transparency in their data handling practices. The case against Netflix signals potential future costs related to compliance and reputational risks for streaming services and tech companies broadly [5].