Netflix's offices in France and Amsterdam are being investigated for engaging in tax fraud

Investigators raided offices located in Paris and Amsterdam on Tuesday.

The raid came on the heels of a 2022 probe into alleged tax-related crimes and undeclared labor, per a French justice ministry official, according to Bloomberg. The company said in a statement: “We are co-operating with the authorities in France, where is a significant contributor to the local economy — and we comply with the tax laws and regulations in all the countries in which we operate.”

and the Netherlands teamed up for the two-year-old case.

Netflix came under fire in France, one of the US-based streaming platform's biggest European markets, because of tax filings from 2019, 2020 and 2021, according to a 2023 report in French newspaper La Lettre.

French branch ignited suspicion after they were found using a company in the Netherlands, where Netflix’s European headquarters are located, to cut their tax revenue in France.

Until 2021, Netflix’s operation in France was designed so subscribers would be signed up with a Dutch subsidiary. This allowed the business to pay below a million in taxes in France in 2019 and 2020, despite having approximately seven million French subscribers.

After the agreement came to an end, Netflix France obtained a significantly higher revenue in France once it counted subs in France and not the Netherlands, per La Lettre, according to Bloomberg. In 2022, Netflix earned about $1.3 billion in revenue in France, which was more aligned with its 10 million subscribers in June 2023.

Although it's a preliminary investigation being held, it doesn't mean criminal charges are going to be filed or that a trial will happen.

According to the Netflix website, “Reed Hastings and Marc Randolph have an idea to rent DVDs by mail. They test the concept by mailing themselves a DVD. The DVD arrives intact, and the idea for Netflix is born.”

In 1998, the Netflix website launched as a DVD rental and sale site. Almost ten years later, Netflix launched as a streaming platform in America in 2007. In 2010, Netflix offered its streaming services in Canada, and the following year, the Caribbean and Latin America got access to Netflix, according to .