Apple’s turf war over Chicago’s ‘Netflix tax’ ends in settlement

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Following several years of lawful back-and-forth, Apple and the town of Chicago have arrived at an agreement on the so-named “Netflix tax” applied to streaming solutions.&#13

On Wednesday, Apple officially dropped its lawsuit towards Chicago, choosing to arrive at a settlement relatively than pursue even more legal motion. The situation was dismissed by Prepare dinner County Circuit Court Judge Daniel Duffy, who recently granted a motion by Chicago to dismiss Apple’s challenge.&#13

According to The Hollywood Reporter, the conditions of the settlement were not disclosed.&#13

In 2015, Chicago released a change to its Amusement Tax that put a 9% tax on streaming leisure expert services. Also referred to as a “Netflix Tax” and impacting providers like Netflix, Spotify, and Apple’s possess Apple Television set+. &#13

In 2018, Apple filed a lawsuit versus the city, arguing the tax violated the federal Internet Tax Liberty Act, as properly as the U.S. Constitution’s commerce and because of course of action laws. &#13

When Chicago gained that demo, Apple amended its criticism to say that circumstance was a “facial problem” to the tax application, but that Apple was complicated how the tax was applied to its have solutions.&#13

At the time, Decide Duffy dismissed the lawsuit. He declared that Apple’s filing was an insufficient obstacle, and gave Apple go away to file an amended complaint.

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