Consumer Law

Apple and the City of Chicago Settle a Lawsuit Over ‘Netflix Tax’

Apple has settled its lawsuit with Chicago over the city’s so-called “Netflix tax,” according to a report from The Hollywood Reporter. The tax placed a 9 percent levy on “amusements that are delivered electronically” — essentially targeting streaming services.

The exact terms of the settlement weren’t made public. Though, Bloomberg Tax last year reported that revenues from the tax — widely thought to be the first of its kind — grew to over $30 million in the year ending June 30th, 2021.

The decision has been a long time coming. Chicago introduced the new tax in 2015 as it attempted to make up for the lost revenue from traditional brick-and-mortar stores. Apple filed its challenge in 2018, and was one of many groups and companies objecting to the law. Others that raised legal challenges included Sony Interactive Entertainment, video game trade association the Entertainment Software Association (ESA), and an advocacy group representing Netflix, Hulu, and Spotify.

Read the source article at The Verge

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