Dutch regulators imposed a 4.75 million euro ($4.98 million) fine on Netflix on Wednesday, citing shortcomings in how the streaming giant managed subscribers’ personal data.
The authorities stated that Netflix’s handling of user information lacked clarity and was incomplete in several aspects.
Netflix has contested the fine, emphasizing its cooperation with the Dutch Data Protection Authority and its efforts to update its policies.
“Between 2018 and 2020, Netflix did not provide customers with enough information about what the company does with their personal data,” the AP said in a statement.
The AP further pointed out that the details Netflix shared with its users were “unclear in some areas.”
The regulator acknowledged that Netflix had since revised its privacy statement, enhancing the transparency of its data usage practices.
“A company like that, with a turnover of billions and millions of customers worldwide, has to explain properly to its customers how it handles their personal data,” said AP chairman Aleid Wolfsen. “That must be crystal clear. Especially if the customer asks about this. And that was not in order.”
The AP highlighted several areas where Netflix fell short, including a lack of transparency about why personal data was collected, its sharing with other entities, the duration of data retention, and the measures taken to secure information when transmitted outside Europe.
Addressing the situation, a Netflix spokesperson stated, “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. We have objected to this decision.”
