Polish consumer watchdog is taking subscriptions under the microscope. Netflix facing charges, giants pledge changes

The subscription model of major technology companies has come under the magnifying glass of the Polish regulator, which is questioning the legality of raising prices without active customer consent. Netflix was the first to face formal charges, but the OCC's wide-ranging investigation also covers practices by Apple, Google or Microsoft.

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UOKIK – polish consumer watchdog – has formally charged the Netflix platform for unilaterally raising subscription prices. The regulator found that informing users of the change and treating their lack of response as consent to higher charges was an unlawful practice.

The case is part of a broader analysis of the subscription market, which includes major technology players.

At the heart of the dispute is the mechanism for implementing the increases. While Netflix sent notices to users when raising prices in August 2024, it automatically charged a higher amount in the next billing period if users did not object or cancel the service.

In the opinion of the President of the UOKIK, such action violates consumer interests. Changing a key element of the contract, such as the price, requires an explicit and informed consent of the subscriber, especially in a model where fees are charged automatically.

The regulator is challenging clauses in the terms and conditions that gave the company the freedom to unilaterally modify the terms and conditions. If the allegations are confirmed, Netflix faces a financial penalty of up to 10% of its annual turnover.

The company may also be required to repay amounts wrongly collected.

The authority’s actions are not limited to Netflix. Investigations are looking into the regulations and practices of Apple, Google (with YouTube Premium), Microsoft (with Game Pass), Sony (with PlayStation Plus), Disney+, HBO Max and Adobe.

The pressure is already having its first effects. Google and Apple have declared that they will in future seek the active consent of users for changes to subscription agreements. However, the OCC stresses that it expects not only the adjustment of practices for the future, but also the redress of consumers for past losses.

The regulator suggests that platforms that unlawfully raised fees should automatically refund customers the overpaid difference. This is a clear signal that the digital services market in Poland must fully respect consumer rights.

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