California Appeals Says Panel Netflix, Hulu Don’t Owe Video Fees

The California city of Lancaster can’t sue Netflix, Inc. and Hulu, LLC for nonpayment of 5% video service provider fees, a state appellate court said on Thursday.

A three-judge panel of the California Court of Appeal for the Second Appellate District unanimously affirmed a 2022 trial court ruling that it’s up to the California Public Utilities Commission—not cities—to take enforcement actions against companies that don’t hold state franchises.

The panel rejected arguments from the city that the streaming companies owe the fees because they are video service providers under the state Digital Infrastructure and Video Competition Act and have been ...