"Cannot Pay Network Usage Fee" Netflix Files Lawsuit Against SKB...KCC Suspends Reconsideration

[Asia Economy Reporter Koo Chae-eun] As Netflix filed a lawsuit against SK Broadband, the dispute mediation process over network usage fees conducted by the Korea Communications Commission (KCC) since November last year has become 'futile.'

On the 14th, the KCC announced that it would suspend the mediation procedure after Netflix filed a "confirmation of non-existence of debt" lawsuit against SK Broadband at the Seoul Central District Court on the 13th. A KCC official explained, "According to the Telecommunications Business Act, once a lawsuit is filed, the related mediation process is suspended." According to the Telecommunications Business Act, if one party files a lawsuit during the mediation process, the KCC must stop the mediation and notify the other party of this fact.

The KCC had been handling the mediation request from SK Broadband since November last year to resolve the network usage fee dispute with Netflix. However, with Netflix filing the lawsuit, all mediation procedures have been completely halted.

On the 13th, Netflix filed a "confirmation of non-existence of debt" lawsuit against SK Broadband at the Seoul Central District Court. The essence of the claim is that although SK Broadband demands network usage fees, Netflix has no obligation to pay. Netflix stated, "It is unfair for an ISP that charges consumers to also demand network usage fees from a CP. Netflix proposed the Open Connect program, which prepositions content from overseas to the country to resolve traffic issues, but SK Broadband has not accepted this." They added, "We proceeded with KCC mediation, but since the gap between the two companies did not narrow, we decided to proceed with the lawsuit. Regardless of the lawsuit, since there are common consumers, cooperation will continue."

SK Broadband stated, "It is necessary to prepare measures to jointly resolve Netflix's rapidly increasing traffic," and added, "Once the court delivers the complaint, we will review it and decide on follow-up responses."

Accordingly, the conflict over 'network usage fees' between the two parties is expected to lead to a prolonged legal battle. An industry insider said, "The claims of both sides are evenly matched, so it is highly likely to go through three trials."

This content was produced with the assistance of AI translation services.