Global streaming giant Netflix has been hit with a €4.75 million ($4.98 million) fine by the Dutch Data Protection Authority (AP) for failing to provide adequate and clear information about its handling of subscribers’ personal data between 2018 and 2020. The AP accused Netflix of breaching transparency standards, citing unclear and incomplete explanations regarding how customer data was collected, used, and shared.
Netflix’s Privacy Violations Highlighted by Regulators
The AP stated that during the two-year period under review, Netflix did not sufficiently explain critical aspects of its data practices, including:
- The purpose of data collection.
- The third parties with whom data was shared.
- How long customer data was retained.
- Measures to secure data, particularly when transmitted outside Europe.
Aleid Wolfsen, the AP’s chairman, emphasized the importance of transparency, especially for a multinational company like Netflix with billions in revenue and millions of subscribers worldwide. “A company like that must explain properly to its customers how it handles their personal data. That must be crystal clear, particularly when customers inquire about it. And that was not in order,” Wolfsen said.
Netflix’s Response and Policy Updates
Netflix has since updated its privacy policies and improved its communication with subscribers regarding data usage. In a statement, the company acknowledged the changes it has made in response to regulatory concerns.
“Since this investigation began over five years ago, we have cooperated with the Dutch Data Protection Authority and proactively evolved our privacy information to provide even greater clarity to our members,” a Netflix spokesperson said.
Netflix has appealed the fine, arguing that it has been fully cooperative with the AP throughout the investigation and has already addressed the identified shortcomings.
Privacy and Compliance in the Spotlight
The fine underscores growing regulatory scrutiny over how global corporations manage personal data. The AP stressed that compliance with data protection laws is non-negotiable, especially for companies with vast international reach.
The case also reflects the broader challenges facing tech companies in navigating privacy regulations across jurisdictions. As consumer awareness about data privacy increases, authorities worldwide are enforcing stricter standards to hold companies accountable.
With its reputation as a leader in the streaming industry, Netflix now faces pressure to rebuild trust and ensure that its practices align with legal and ethical expectations.
Source: Hobnob News
