Netflix fined Rs 42.35 crore: Accused of lack of transparency on data privacy

The Data Protection Authority (DPA) of the Netherlands has imposed a huge fine of €4.75 million (₹42.35 crore) on Netflix for not providing adequate information regarding the use of users' data between 2018 and 2020. This action has been taken for violating the General Data Protection Regulation (GDPR) of the European Union.

What came to light in the DPA investigation?

The DPA's investigation, begun in 2019, found that

Netflix's privacy policy was unclear about how it uses and stores its customers' data.
When customers asked for information about the use of their data, they did not receive adequate answers.
According to the GDPR, companies must clearly explain how they handle personal data and answer customer questions transparently.

Netflix's answer

Netflix objected to the fine, saying: They have cooperated fully with the DPA during the investigation. has already made major improvements to its privacy policy to increase transparency on data usage. These reforms were implemented long before the fines. “Over the past five years, we have taken several steps to make privacy information clearer,” a Netflix spokesperson said. We will appeal against this decision.”

DPA's objection

Aled Wolfson, Chairman of the DPA, said: “A company with a turnover in the billions and millions of customers around the world should be able to clearly explain to its customers how it handles their data. “Especially, when customers ask for this information, it is mandatory to provide them complete information.”

The DPA found the following flaws in Netflix's privacy policy:

• The purpose of data collection was not clear.
• Details of sharing data with third parties were vague.
• Information was not given for how long the data would be kept.
• There was no mention of security measures for data transfers outside Europe.

Growing importance of data privacy

European regulators are becoming increasingly strict regarding GDPR rules. This fine is an indication that companies will have to be cautious about the privacy of their customers and adopt clear and transparent policies.