• Cryptocurrency
  • Earnings
  • Enterprise
  • About TechBooky
  • Submit Article
  • Advertise Here
  • Contact Us
TechBooky
  • African
  • AI
  • Metaverse
  • Gadgets
Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors
  • African
  • AI
  • Metaverse
  • Gadgets
Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors
TechBooky
Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors
Home Enterprise

Apple Backs Down On Lawsuit Against Chicago’s ‘Netflix Tax’

Ayoola by Ayoola
July 25, 2022
in Enterprise
Share on FacebookShare on Twitter

The litigation between Apple and Chicago City over the ‘Netflix tax’ is reported to have reached an amicable end as a report from The Hollywood Reporter says the multinational technology company has settled its lawsuit with the US city.

Chicago had placed a 9 percent levy on “amusements that are delivered electronically” essentially targeting streaming services like Netflix, reason for the coinage: ‘Netflix tax’.

Bloomberg Tax had in 2021 reported that over $30 million were made from revenues from the tax, in the year ending June 30th, 2021, the first ever of its kind.

Chicago in a bid to make up for the lost revenue in traditional  brick-and-mortal stores had introduced the new levy in 2015 but Apple, one of the many groups and companies objecting to the tax levy had in 2018 sued the Chicago State over the new law. Apple was not the only company who objected to the new tax law as others like Sony Interactive Entertainment, video game trade association the Entertainment Software Association (ESA), and an advocacy group representing Netflix, Hulu, and Spotify also joined the fray.

It appears Apple has now soft-pedalled on its stance as it has offered a settlement, even though the exact terms of the settlement deal haven’t been made public.

Apple though had challenges in the suit as the number of objections facing the tax led to the delay. The litigation was for two years placed on hold, just as the challenge of the various streaming services users worked its way to the courts. The legal pitfalls were over time either decided on behalf of Chicago (or not overturned on appeal), or settled, or dropped.

Apple’s amended complaint in the suit alleging the unconstitutionality of the suit was last week dismissed by a judge with the Hollywood Reporter reporting that the technology company decided against appealing the verdict.

Taking cognizance of the fact that ‘Netflix tax’ revenues constitute just a tiny fraction of Chicago’s $1.5 billion tax income, the city’s revenue has over the past five years roughly tripled, according to Bloomberg Tax.

It notes that the tax brought in about $9.4 million in its first full year in 2017, while it rose to $28.8 million in 2020, and then $31.2 million 2021 from the 47 businesses registered under the rules.

Related Posts:

  • Screen_Shot_2021_11_02_at_1.24.40_PM.0
    99% Of Netflix Subscribers Haven’t tried Its Games Yet
  • Netflix-1
    Netflix’s Ad-Supported Tier May Have Commercial-Free Content
  • Netflix Q1 2023 Earnings Slightly Misses, Shares Tank
  • netflix-games
    Netflix Wants You To Control Games On TV From Your iPhone
  • stk072_vrg_illo_n_barclay_7_netflix-1-696×464
    Netflix Has cancelled Its Basic Ad-Free Plan In The US
  • Netflix 1
    Netflix’s Ad-Supported Service Hits 94M Subscribers
  • X2oggLgBnxuc5iHqkrTpgZ-1200-80
    Netflix App Integration with Apple TV Was Temporary Error
  • Netflix To Start Charging More For Account Sharing, Announces Countries That'll Pay More Starting August
    Netflix To Start Charging More For Account Sharing,…

Discover more from TechBooky

Subscribe to get the latest posts sent to your email.

Tags: Appleapple tv pluschicagonetflix chicago tax
Ayoola

Ayoola

Ayoola Faseyi, an Abuja based Journalist with interest in Technology and Politics. He is a versatile writer with articles in many renowned News Journals.He is the Co-Founder of media brand, The Vent Republic.

BROWSE BY CATEGORIES

Select Category

    Receive top tech news directly in your inbox

    subscription from
    Loading

    Freshly Squeezed

    • Walmart Spent $580M on Microsoft Azure in 11 Months, Leak Shows May 30, 2025
    • Texas Signs Internet Regulations Targeting Apple & Google May 30, 2025
    • Chris Rogers Named New CEO of Instacart May 29, 2025
    • Spotify Adds New Features To Enhance Podcast Discovery May 29, 2025
    • FG Unveils Digital Village in Abuja with Free Internet May 29, 2025
    • Vital Lifeline: 9mobile to Launch MTN Roaming Partnership in June May 29, 2025

    Browse Archives

    May 2025
    MTWTFSS
     1234
    567891011
    12131415161718
    19202122232425
    262728293031 
    « Apr    

    Quick Links

    • About TechBooky
    • Advertise Here
    • Contact us
    • Submit Article
    • Privacy Policy
    • Login

    © 2021 Design By Tech Booky Elite

    Generic selectors
    Exact matches only
    Search in title
    Search in content
    Post Type Selectors
    • African
    • Artificial Intelligence
    • Gadgets
    • Metaverse
    • Tips
    • About TechBooky
    • Advertise Here
    • Submit Article
    • Contact us

    © 2021 Design By Tech Booky Elite

    Discover more from TechBooky

    Subscribe now to keep reading and get access to the full archive.

    Continue reading

    We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.Ok