Streaming giant Netflix (NFLX) has been fined €4.75 million by the Dutch Data Protection Authority (DPA) for privacy violations. The investigation, which began in 2019, revealed that Netflix did not clearly inform its customers about how it collected and used their data.
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During the probe, the DPA found that NFLX’s privacy statement was unclear and lacked important details about its data processing practices. Additionally, the company provided inadequate responses to customer inquiries regarding its data collection methods.
As a result, the regulator said that NFLX violated the European Union’s General Data Protection Regulation (GDPR), which sets strict guidelines for managing personal data.
NFLX Is Not the Only Company Fined
It is worth noting that Netflix disagreed with the DPA’s findings and expressed concerns about the regulator’s strict enforcement of the rules. The company also noted that it has already improved its privacy policy and data practices.
Investors should note that this is not the first time a major tech company has faced fines for GDPR violations. Earlier in August 2024, DPA fined Uber Technologies (UBER) €290 million for violating the GDPR by transferring the personal data of its drivers to the United States. Also, in May 2023, the Irish regulator fined Meta Platforms (META) $1.3 billion for failing to protect European Facebook users’ data from surveillance in the U.S.
These moves by regulators highlight the need for clear and transparent data practices, especially for firms with a wide global user base.
Is Netflix a Buy, Sell, or Hold?
Turning to Wall Street, NFLX stock has a Moderate Buy consensus rating based on 24 Buys, 10 Holds, and two Sells assigned in the last three months. At $839.55, the average Netflix price target implies a 5.62% downside potential. Shares of the company have gained 82.7% year-to-date.
