Apple, Chicago Settle Suit Over City’s Unique ‘Netflix Tax’

Apple Inc. and Chicago agreed to settle the tech giant’s challenge to the city’s one-of-a-kind tax on streaming entertainment services.

Cook County Circuit Court Judge Dan Duffy dismissed the company’s amended complaint in an order filed Wednesday. The company objected to Amusement Tax Ruling No. 5, a 2015 revenue program imposing a 9% tax on streaming entertainment services.

The challenge was placed on hold for more than two years while Illinois courts dealt with the related action, Labell v. Chicago, brought by users of Netflix Inc., Hulu LLC, and Spotify. Chicago survived the challenge, winning ...