EU Raises Voice Over Telecom-Big Tech Network Usage Fee Dispute... Will South Korea Accelerate Regulation?

EC "Big Tech Avoids Responsibility
Share Annual 37 Trillion KRW Usage Fees"
Launches Traffic Survey in Europe

Six Related Bills Draw Attention in Korea
Market Calls for "May Public Hearing"

[Asia Economy Reporter Cha Min-young] "Fair contribution to communication networks is an issue we need to focus on closely."

The European Commission (EC) has ordered big tech companies?large information technology firms?that have so far ignored their responsibility to share network usage fees, estimated at 37 trillion won annually within Europe, to start contributing. With the EC taking direct action on network usage fees for big tech, it is expected that domestic discussions related to network usage fee laws, which took the first step earlier, will also gain momentum.

"Big Tech to Share Network Usage Fees"

Margrethe Vestager, the EC’s Digital Chief, held a press conference in Brussels, Belgium, on the 2nd (local time), stating, "There are players who generate a lot of traffic and operate their businesses through it but do not contribute to activating the traffic," adding, "We are investigating how internet data traffic has changed annually." The EC has launched a survey on the current status of internet traffic within Europe.

The EC’s remarks are interpreted as an immediate response to European telecom operators’ demands for sharing network usage fees. The European Telecommunications Network Operators’ Association (ETNO) cited a survey commissioned from UK IT consulting firm Axon, claiming, "Big tech’s share of traffic within Europe is at least 55%," and "The cost that European telecom operators must bear to maintain this traffic reaches up to 28 billion euros (approximately 37 trillion won) annually." It is estimated that European telecom companies have invested about 500 billion euros (approximately 663 trillion won) in network improvement projects over the past decade. The environmental burden caused by excessive traffic is also a concern for Europe, which adheres to eco-friendly policies. Big tech companies like Netflix are often likened to "large trucks consuming traffic."

"Hold a Public Hearing Before Local Elections"

Disputes over big tech’s refusal to pay network usage fees are not limited to Europe but are also occurring similarly in Korea. Netflix is currently in litigation with SK Broadband, refusing to pay network usage fees. In the first trial, the court ruled in favor of SK Broadband, confirming Netflix’s obligation to pay network usage fees, but Netflix has appealed. Netflix argues that the role of content providers (CPs) is to provide quality content and that it contributes to network stabilization by offering its own content delivery network (CDN), the Open Connect Alliance (OCA), in a spirit of coexistence with internet service providers (ISPs). With the legal battle ongoing for over three years, the trial itself is expected to be prolonged.

Attention is also focused on six bills pending before the National Assembly’s Science, Technology, Information and Broadcasting and Communications Committee. These bills aim to require global CPs, which generate massive traffic, to pay fair costs for domestic network usage, thereby creating a fair internet ecosystem. The committee had planned to process the amendment to the Telecommunications Business Act, which mandates network usage fees, at the second subcommittee meeting on the 20th of last month but agreed to hold a public hearing for more gradual discussion.

In the market, there is speculation that holding the public hearing within May will accelerate the legislative discussions. An industry insider said, "Considering that all members of the National Assembly subcommittee will change by the end of May and the local elections scheduled for June, the discussions could gain momentum," adding, "Stakeholders and academia need to quickly come together to prevent the bill from stalling."

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