SK Broadband files countersuit against Netflix over usage fees

SK Broadband announced on Thursday, Sept. 30 that it had filed a countersuit against Netflix over network usage fees. It was reported that the lawsuit had been based on the court decision in June, which favored the Korean internet service provider.

In April, Netflix’s Korean unit sued SK Broadband and requested the court in Seoul to confirm that it is not its duty to pay the said usage fees concerning data traffic. In June, the court released its decision that ruled against Netflix in the dispute, and the streaming firm filed for an appeal in July.

The Seoul Central District Court rejected and dismissed Netflix’s request that states it has no obligation to pay network usage fees to SK Broadband. Thus, the appeal was filed in an effort to reverse the decision.

“There has never been a case globally where a court or a government forced content providers to pay for network fees,” Netflix said in a statement. “The decision may topple the global internet ecosystem developed by content providers and internet service providers.”

More than two months after Netflix filed its appeal, The Korea Herald reported that SK Broadband, one of the leading broadband internet providers in the country, heads to the Seoul High Court to countersue the streaming service provider.

This move was said to be a follow-up measure as Netflix did not respond to the broadband firm’s proposals. Likewise, SK Broadband went on to file its countersuit so it could finally claim fees for the use of its network so Netflix could provide its service in South Korea.

“Netflix is free-riding on our network that is provided at cost due to the huge spending in initial establishment and annual maintenance,” Pulse News quoted SK Broadband as saying regarding the case. It added that it has decided to countersue because, despite the ruling, Netflix continues to refuse to enter negotiations so they can reach an agreement.

SK Broadband stressed that as of September this year, Netflix Korea consumes around 1,200Gbps of traffic on its network. This number is said to be a big increase from May 2018, when it was only consuming 50Gbps.

The company further noted that maintaining this service for the streaming giant is definitely not for free. Finally, it was estimated that the network usage fee involved in the dispute could reach up to $84.4 million or ₩100 billion.