Netflix Claims to Stop Free Riding, but Backlash from Naver and Kakao? Popularity Association Reacts

[Asia Economy Reporter Bu Aeri] The enforcement decree of the Telecommunications Business Act, known as the 'Netflix Free Riding Prevention Act,' was released on the 8th, prompting backlash from the internet industry.

The enforcement decree of the Telecommunications Business Act, announced by the Ministry of Science and ICT on the same day, mandates value-added telecommunications service providers such as Netflix, Google, Naver, and Kakao to take measures to ensure service stability.

This includes technical measures for stable service provision, securing stability regarding server capacity and smooth internet connectivity, and requiring related operators such as period telecommunications service providers (telecom companies) to be notified in advance if there are reasons that could significantly affect stability.

In response, the Korea Internet Corporations Association, which includes Naver and Kakao, argued that the enforcement decree imposes excessive obligations on value-added telecommunications service providers that provide content.

In a statement, the association called for a full review of the enforcement decree, citing vague standards and parts that violate fairness.

In particular, the association questioned the government's decision to set the application criteria of the enforcement decree as value-added telecommunications service providers with an average daily user count of over 1 million and accounting for more than 1% of total domestic traffic.

Applying this criterion includes eight companies such as Netflix, Google (YouTube), Facebook, Naver, and Kakao. The association pointed out, "There is no clear basis for how the 1% traffic standard was determined," and added, "It is also questionable who measures the traffic, by what standards, and how, and the accuracy of the data cannot be guaranteed."

Additionally, the association expressed concerns that it might force direct contracts with period telecommunications service providers (telecom companies).

The association stated, "It is practically impossible for value-added telecommunications service providers to take stability assurance measures for the end users of period telecommunications service providers with whom they have not directly contracted," and argued, "In some cases, this could effectively force value-added telecommunications service providers to contract with virtually all major period telecommunications service providers, potentially leading to increased network costs."

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