Investigations into Netflix's Offices

PARIS (Reuters) – Investigators searched the offices of U.S. streaming giant Netflix (NASDAQ:NFLX) in France and the Netherlands as part of a preliminary investigation into tax fraud laundering, according to a French judicial source on Tuesday.

French paper Marianne, which first reported the searches, stated that investigators specializing in financial crime and corruption raided the company's offices in central Paris on Tuesday morning.

The French investigation, headed by the PNF, a special financial crime prosecution unit known for pursuing high-stakes white-collar cases involving large international firms, was opened in November 2022.

Simultaneously, Dutch authorities were searching Netflix's European headquarters in Amsterdam, according to the French judicial source.

Representatives for Netflix in France did not immediately respond to Reuters' phone calls or emailed requests for comment, and representatives in the Netherlands were also unavailable for comment.

The office of the Dutch prosecutor for financial crime declined to comment and referred questions to the PNF.

"Cooperation between the French and Dutch authorities has been ongoing for many months as part of these proceedings," stated the French source.

A preliminary investigation in France does not imply criminal charges and does not necessarily lead to a trial. The specific facts that led to the investigation were not immediately clear.

Large tech companies providing online services across borders often face challenges with European tax authorities. In 2022, Netflix settled a tax dispute with Italy, paying 55.8 million euros ($60.78 million).

Netflix announced on its website that it opened its Paris bureau in 2020, located just around the corner from the Opéra Garnier, and employed around 40 staff at that time. The company creates most of its original films and series, including the global hit Emily in Paris, by collaborating with third-party contractors.

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