Netflix could be forced to refund millions of customers and cut subscription prices after a landmark ruling by an Italian court found the streaming giant’s repeated price hikes unlawful.

The April decision determined that increases introduced in 2017, 2019, 2021 and 2024 breached Italy’s consumer protection laws, which require companies to clearly justify contract changes.

The Rome court ruled Netflix failed to provide valid reasons for raising prices, effectively invalidating those increases.

If upheld on appeal, the ruling could see Italian subscribers receive significant payouts. Premium users may be entitled to refunds of up to €500 (A$830), while Standard plan customers could receive roughly €250. The court has also ordered Netflix to reduce current subscription fees to reflect pre-increase pricing.

The case was brought by a consumer advocacy group following complaints from more than 25,000 users. The group argued the decision could impact millions, with Netflix estimated to have over five million subscribers in Italy.

Netflix has confirmed it will appeal, saying its pricing practices comply with Italian law and industry standards. The appeal process means refunds and price cuts are not yet guaranteed.

The ruling also requires Netflix to notify affected customers within 90 days about their eligibility for compensation or face financial penalties.

The case highlights growing regulatory scrutiny around subscription pricing. While Netflix continues to raise prices in other countries, the Italian decision highlights increasing pushback from both consumers and courts.