Not even close. First, ignore the totally optional, extremely easy to cancel, no contract required part, it's irrelevant. There is a contract, it was agreed by two parties, and the terms must meet the standards of Italian law.
(for Americans who have never visited Italy, the laws over there are highly codified and complex. Italy doesn't follow the English/American Common Law, it follows the modern European standard based on Napoleonic Law. Anything you think you know about the law based on American customs, you should unlearn).
The issue for Netflix HQ is simple: 1) stop telling the Italian subsidiary what to do, they know better than you. 2) pay the fines, unless you want to leave money on the table by leaving the country. 3) if you leave Italy, you will have to leave all of the EU countries too, because the way that the common market works it's all mixed up.