Second Trial between Netflix and SK Broadband Starts
The second trial between Netflix and SK broadband started on March 16 at the Seoul High Court. Netflix lost the first trial, but is still refusing to pay network usage fees.
“When we launched our service in South Korea in 2016, we agreed with SK broadband on zero network usage fees based on the principle that peering beneficial to both does not entail network usage fees,” Netflix claimed. In response, SK broadband stressed that every service from an Internet service provider to a content provider is paid. “According to the current law, a content provider can use an Internet service provider’s network by paying for the use,” it said.
SK broadband also claimed that the data traffic caused by Netflix has skyrocketed since the outbreak of COVID-19 and the cost cannot be borne anymore without the fee. “Without a payment from the content provider, the network cost burden will have to be shifted to consumers,” it mentioned, continuing, “Even if Netflix installs a bypass network in South Korea, it is network use based on a domestic ISP base station and, as such, network usage fees must be paid accordingly.”
The court told both sides to explain why they are making their claims and whether there was an explicit agreement related to peering. In addition, the court told SK broadband to explain why it charged the cost late and demanded information on contract relations between Netflix and foreign Internet service providers. The next court date is May 18.