CJEU Strengthens the Right of Withdrawal for Streaming and Digital Subscriptions
In its judgment of 9 July 2026 in Sky Österreich / VKI (C-234/25), the Court of Justice of the European Union (CJEU) made key findings that will require significant changes to the way digital subscriptions are offered. According to the Court, streaming services that allow users to access content via an app or a link and that personalise their offering based on users’ behaviour generally constitute digital services rather than merely digital content.
The decisive factor is not the type of content offered, but the nature of the service provided: where the offering is dynamically adapted to users’ behaviour through recommendations, personalised playlists or similar features, it constitutes a digital service. This applies to a wide range of digital offerings, including:
- Online newspapers and news subscriptions
- Music streaming services
- Gaming and cloud gaming subscriptions
- E-book and audiobook subscription services
- Other digital subscriptions featuring personalised recommendations or user-specific content
Where such services provide content on the basis of user profiles or user behaviour, there are strong grounds for classifying them as digital services rather than as the supply of digital content.
Right of Withdrawal Generally Remains in Place
The decision has significant implications for the right of withdrawal in relation to digital subscriptions that tailor their content on the basis of user profiles.
Until now, many providers have relied on the exception for digital content under Article 16(m) of the Consumer Rights Directive. On this basis, the right of withdrawal was intended to expire once the consumer began using the service.
According to the CJEU, however, this exception is generally not applicable to personalised, dynamic offerings, as these are to be classified as digital services. Different rules therefore apply: in principle, the right of withdrawal may only expire prematurely once the service has been fully performed and the relevant statutory requirements have been met. Merely activating the subscription or commencing performance immediately is not sufficient.
For consumers, this means that many personalised digital subscriptions may still be withdrawn from within the 14-day withdrawal period, even if the consumer has already used the service.
Compensation for Services Already Provided Remains Possible
At the same time, the CJEU emphasised that providers are not left without protection. If a consumer has expressly requested that performance begin during the withdrawal period, the provider may, in principle, claim proportionate compensation for services provided up to the time of withdrawal.
Such compensation does not necessarily have to be calculated solely by reference to the duration of use. According to the CJEU, the economic value of the content actually used may also be taken into account – for example, where particularly valuable or costly content has been accessed.
Providers should therefore assess whether, and in what form, a practical compensation model can be implemented in a manner that is both commercially viable and customer-friendly.
Action Required for Providers
Providers of personalised digital subscriptions should review their existing contractual arrangements and ordering processes and make adjustments where necessary. In particular, they should assess whether their offering should be classified as a digital service due to its personalised and dynamic nature.
Withdrawal information and terms and conditions that are based on the rules applicable to digital content should be legally reviewed and, where necessary, revised to ensure that the right of withdrawal is not excluded prematurely in an unlawful manner.
Where commercially appropriate, providers may also consider introducing a transparent and comprehensible compensation model for cases in which consumers exercise their right of withdrawal.
Conclusion
The CJEU’s judgment significantly strengthens consumer rights in relation to personalised digital subscriptions. For many streaming, news, music and gaming services, the commonly used practice of automatically excluding the right of withdrawal will no longer be sustainable. Providers should therefore review their contractual documentation, withdrawal notices and digital contracting processes promptly and adapt them to the new case law.
Dr Philipp-Christian Thomale
