On November 5, 2024, French authorities conducted searches at Netflix's Paris office and its European headquarters in Amsterdam as part of an investigation into suspected tax fraud and undeclared work.

The reasons behind the investigation remain undisclosed, but large tech companies like Netflix often face tax compliance issues in Europe.

Details regarding the specific nature of the allegations or the outcomes of the searches have not yet been disclosed.

The investigation highlights ongoing challenges that large tech firms encounter with European tax authorities, particularly concerning their cross-border online services.

The investigations focus on the complex issue of where international companies, such as Netflix, should record their profits, especially as they acquire rights to films and series across multiple countries.

Despite having 7 million subscribers in France, Netflix Services France reported only €981,000 in profits between 2019 and 2020.

In 2023, Netflix invested 250 million euros in French productions, including 50 million euros in film productions, with notable success from the series 'Lupin'.

To comply with French regulations, Netflix has committed to investing 20% of its annual revenue in local content, which includes TV series and films.

Netflix has been operating in France for over a decade, currently boasting about 10 million subscribers and celebrating its tenth anniversary in the market.

Netflix has not yet responded to requests for comments regarding the raids or the ongoing investigation.

As of now, the preliminary investigation does not indicate any criminal charges or guarantee that a trial will follow.

This investigation is part of a broader scrutiny of Netflix's financial practices in Europe, which has included a previous settlement of €55.8 million with Italian tax authorities in 2022.