Netflix and Fine: Why Was the Streaming Giant Fined by the Dutch DPA?
Introduction
The imposition of a €4.75 million (approximately $5 million) fine on Netflix by the Dutch Data Protection Authority (DPA) underscores the growing emphasis on transparency in data handling practices under the General Data Protection Regulation (GDPR). The penalty, levied in relation to Netflix’s handling of customer data between 2018 and 2020, serves as an important reminder for organizations about the importance of complying with privacy regulations.
Regulatory Findings
The investigation, which commenced in 2019 following complaints from the Austrian privacy organization None of Your Business (noyb), revealed that Netflix’s privacy disclosures were inadequate. The Dutch DPA determined that the company failed to clearly inform customers about the nature and use of their personal data. Specifically, Netflix did not provide sufficient detail regarding the legal basis for data processing, the purposes for which the data was collected, and the criteria for data retention.
Additionally, the company was found to be lacking in its responses to individual data access requests—a right enshrined in Article 15 of the GDPR. This article guarantees that data subjects can obtain confirmation and access to the personal data of the subject held and processed by the controller. The Dutch DPA’s findings make it clear that Netflix’s practices did not meet the required standards of completeness and transparency as demanded by the GDPR.
Response by Netflix
The company has objected to the fine, asserting that they followed the GDPR. Nevertheless, Netflix has updated its privacy statement and enhanced its communication regarding data practices. ?Despite the objection, the decision by the Dutch DPA remains a clear example of strict regulatory enforcement in case of non-compliance. Similar cases have been observed across the industry, with other major companies facing fines for breaches related to data transparency and inadequate customer information. This trend reflects a broader movement among European regulators to enforce stringent compliance standards and to ensure that data controllers remain accountable for their data processing practices.
Conclusion
This case also serves as a cautionary note to other global enterprises, illustrating that failure to provide transparent information can lead to substantial financial penalties.
Even industry leaders must adhere to the standards established under privacy laws. By failing to provide clear and comprehensive information about data processing practices, Netflix faced significant regulatory repercussions. The case reinforces the necessity of maintaining robust, transparent, and user-friendly privacy policies. Organizations worldwide are reminded that ongoing compliance is essential—not only to avoid fines but also to build and maintain customer trust.
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Tsaaro Consulting, in collaboration with PSA Legal Counsellors and Advertising Standards Council of India, has authored a whitepaper titled ‘Navigating Cookies: Recalibrating Your Cookie Strategy in Light of the?DPDPA’. If you want to learn more about cookie consent management, read the whitepaper by clicking?here.??
The Ministry of Electronics and Information Technology (MeitY) has released the?Draft DPDP Rules,?2025 for Public Consultation!?
Learn more about the Draft Rules here:?????
·????? Understanding the Draft DPDP Rules???
·????? Consent Notice???
·????? Consent Manager???
·????? Processing of Children’s Data???
·????? Data Retention???
·????? Data Principal Rights???
·????? Breach Management?
·????? Security Safeguards???
·????? Exemptions
·????? Data Protection Board of India???
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News of the Week
1. La Liga Fined €1M by the Spanish DPA
Spain’s premier football league, La Liga, has been fined €1 million by the Spanish Data Protection Agency (AEPD) over serious violations concerning its biometric access systems. The fine comes after an investigation revealed that La Liga deployed biometric technologies without proper legal basis and adequate data protection safeguards. The AEPD found that these measures violated EU data privacy standards, particularly regarding consent, transparency, and proportionality. La Liga disagrees with the decision and is considering legal challenges.
2. US Senate Passes AI Deepfake Bill
On 27 February 2025, the US Senate passed an AI Deepfake Bill designed to criminalize the distribution of non-consensual, AI-generated intimate imagery. This landmark legislation aims to curb the misuse of deepfake technology by imposing strict penalties on offenders and significantly enhancing protections for individuals’ privacy. Amid growing concerns over AI-driven misinformation and exploitation, the bill represents a significant step towards bolstering cybersecurity and digital rights. Lawmakers strongly emphasized that the measure is crucial to deter malicious actors and safeguard personal dignity in an era of rapidly evolving artificial intelligence.
3. Canada Probes X’s AI Data Practices
Canada’s privacy watchdog has initiated an investigation into X, the platform formerly known as Twitter, over allegations that it misused Canadians’ personal data for training artificial intelligence models. The probe, triggered by a formal complaint, will examine whether the collection, use, and disclosure of personal information violated federal privacy laws. Lawmakers, including opposition figure Brian Masse, have urged the regulator to ensure greater transparency. This development reflects growing global concerns over data protection in AI applications and underscores the need for stricter privacy safeguards.
4. Genea IVF Clinic Faced Data Breach
An extensive ransomware attack targeted Genea, a major Australian IVF clinic. Hackers infiltrated the system over several weeks, eventually stealing nearly one terabyte of highly sensitive patient data. The incident has raised alarms over the existing “reasonable steps” approach in Australian privacy laws and the challenges in timely breach notification.
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