Telecom Company: "Netflix Law, Institutional Foundation to Fix Free Internet"

Controversy Over Netflix Prevention Law Grows
Korea Internet Corporations Association: "Enforcement Decree Content Is Ambiguous... Only Targeting Domestic Portals"
Telecom Companies: "Meaning of Imposing Network Quality Obligations on Content Giants"

[Asia Economy Reporter Koo Chae-eun] Regarding the enforcement decree of the 'Netflix Prevention Act,' telecommunications companies have expressed that a legal foundation has been established to rectify the 'free network abuse' by Netflix, YouTube, and others. This reaction from the telecom sector highlights a sharp conflict of opinions with internet companies, anticipating a strong confrontation between industries.

On the 8th, the Ministry of Science and ICT announced that it will impose service stability obligations on five CPs?Google, Netflix, Facebook, Naver, and Kakao?that have over one million daily users and account for more than 1% of the country's total traffic. A telecommunications industry official stated, "As an Internet Service Provider (ISP), we will cooperate to the fullest extent to ensure service stability and protect users," adding, "The enforcement decree reflects obligations for value-added telecommunications service providers that were not previously addressed."

Regarding the opposition from the Internet Enterprise Association, which includes Naver and Kakao, the official commented, "Ultimately, this legislation aims to resolve the network usage fee issue, especially for Netflix and YouTube, and is not intended to tighten regulations on CPs that are already paying network fees."

In response to the Internet Enterprise Association's criticism that the law favors only licensed telecommunications operators, the official said, "It is true that most obligations under the Telecommunications Business Act have been concentrated on licensed telecommunications operators (telecom companies), while value-added telecommunications service providers have been subject to less regulation and oversight relative to their influence," adding, "The law is evolving to fit the times."

The telecommunications industry has maintained that global CPs, which generate massive traffic but do not bear responsibility for maintaining network quality, should be obligated to enter into network contracts. The revised enforcement decree requires these CPs to establish their own means to ensure service stability, implement them, and report to the government. Violations may result in fines of up to 20 million KRW.

However, the Internet Enterprise Association issued a statement after the decree was made public on the same day, demanding a full reconsideration, arguing that excessive obligations related to network quality have been imposed on value-added telecommunications service providers that provide content.

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