A dispute between Netflix and SK Broadband in South Korea: Who should pay the network usage fees?

Abstract

The advancement of digital technologies has led to the evolution of media content delivery methods. In particular, OTT services have experienced an explosive growth in the video content industry. The skyrocketing data traffic increases the burden on ISPs’ infrastructure, and the discourse on CPs’ payment of network usage fees has emerged. In digitalization, data traffic will inevitably increase, and related conflicts are expected to occur worldwide. Accordingly, it is significant to review the case of Netflix-SK Broadband in South Korea, the world’s significant legal dispute over the network usage fees. This study examines network usage fees and network neutrality as concepts relevant to the case, traces the litigation process, identifies the reasons for the settlement of the lawsuit, and discusses policy implications. This study suggests that the issue of network usage fees could become a trade issue and that a regulatory framework needs to be evolved accordingly. This study contributes to understanding the issue of network usage fees that will be increasingly important for global digital industries. As such, it can present a reference to the telecommunications and content industries and even to digital trade for their future debate and development.