MILAN, Italy: An Italian court has ruled that Netflix unlawfully raised subscription prices over several years, ordering the streaming giant to refund customers and adjust its pricing practices.

The Rome court found that clauses allowing Netflix to increase subscription fees between 2017 and January 2024 were unfair, siding with a lawsuit brought by consumer group Movimento Consumatori.

According to the ruling, the clauses breached Italy's national Consumer Code because they permitted price changes without clearly stating valid reasons in the contract.

As a result, subscribers are entitled to reimbursement for excess amounts paid, a reduction in their current subscription fees, and, in some cases, additional compensation.

Netflix said it would appeal the decision. "We take consumer rights very seriously and believe our terms have always complied with Italian laws and practice," the company said in a statement.

Lawyers representing consumers said the financial impact for subscribers could be significant.

"For the Premium Plan, the unlawful increases applied in 2017, 2019, 2021, and 2024 amount to eight euros (US$9.22) a month, while for the Standard Plan the total is four euros a month," said lawyers Paolo Fiorio and Riccardo Pinna.

"A Premium subscriber who has paid for Netflix continuously from 2017 to the present day is entitled to a refund of about 500 euros, while a Standard subscriber is due a refund of about 250 euros," they added.

The court also ordered Netflix Italia to publish the ruling on its website and in major national newspapers to inform users that the clauses were void and that they are eligible for reimbursement.

The decision affects a large user base. According to Italy's communications authority, Netflix had more than eight million unique users in the country in 2024, with around 5.4 million paying subscribers in 2025.

The ruling marks a significant legal challenge for Netflix in one of its key European markets, as regulators and consumer groups across the region increasingly scrutinize subscription pricing practices and contract transparency.

Netflix remains the world's largest video streaming platform, offering films and television series in dozens of languages across more than 190 countries.

Listed on the Nasdaq, the company had a market value of about $420 billion in early April 2026 and more than 325 million paid subscribers globally.