Netflix files appeal against court ruling over network usage fees in South Korea

Seoul, July 15 (IANS) Video streaming giant Netflix announced on Thursday that it has filed an appeal against a recent Seoul court ruling that sided with local internet service provider (ISP) SK Broadband Co. in a dispute over network usage charges.

Last month, the Seoul Central District Court dismissed a Netflix plea that the video streaming service operator is not required to pay network usage fees to SK Broadband.

The court also rejected Netflix’s request to confirm that it had no obligation to negotiate with the South Korean company, Yonhap reports.

“There has never been a case in the world where a court or a government has forced content providers to pay network fees,” the video streaming company said in a statement.

“The decision could overturn the global Internet ecosystem developed by content providers and Internet service providers,” he added.

The dispute dates back to April last year when the local Netflix unit filed a lawsuit against SK Broadband after the latter demanded fees for using the streaming company’s network, accusing it of free-riding. on her network when she was responsible for heavy traffic.

Netflix has insisted that it has no obligation to pay network usage charges as ISPs are responsible for managing their networks and requests for network usage charges for specific services violate the principle of net neutrality which prohibits content discrimination.

The video streaming company added in the statement that it had made efforts to negotiate with SK Broadband to no avail. He said he offered SK Broadband to set up its content delivery network to reduce traffic to Netflix content, which the ISP refused and demanded a network fee instead.

The latest ruling escalates the dispute as Netflix’s presence has grown rapidly in South Korea, according to the report.

Netflix’s paid subscriptions in South Korea reached 3.8 million at the end of last year, and the company has pledged to invest $ 500 million in original Korean content this year.

In the last quarter of last year, Netflix accounted for 4.8% of South Korea’s internet traffic, behind Google, which took 25.9%, according to data from the Ministry of ICT.

–IANS

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