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Apple agrees to settle its lawsuit against Chicago’s ‘Netflix Tax’


Apple has settled its lawsuit with the city of Chicago over the so-called “Netflix tax.”

The tax imposed a 9% surcharge on “amusements delivered electronically.”


The settlement’s exact terms were not made public. Bloomberg Tax reported last year that tax revenues would exceed $30 million in the fiscal year ending June 30th, 2021.

A Chicago judge has dismissed Apple’s lawsuit challenging the city’s “Netflix tax.”

The tech titan was one of many organisations and businesses that objected to the law.

Other legal challenges were either decided on the city’s behalf, settled, or dropped. In its first full year, the tax raised $9.4 million, rising to $28.8 million in 2020.