SK Broadband files countersuit vs. Netflix to claim network usage fees

SK Broadband proceeded with a countersuit against Netflix to claim fees on the global streaming giant for using its network to provide its service in South Korea after a Seoul court ruled in favor of the Korean internet service provider (ISP) in their battle over network fee payment.

SK Broadband said Thursday that it brought a countersuit with Seoul High Court following its triumph against Netflix in the legal battle.

“Netflix is free-riding on our network that is provided at cost due to the huge spending in initial establishment and annual maintenance,” said the company, adding that it has decided to file a counteraction because Netflix has refused to enter negotiations to reach compromise despite the ruling.

In June, the Seoul District Court dismissed Netflix’s request to confirm that it is not liable to pay fees for using SK Broadband’s network. “Netflix is provided with charged service of internet network connection through SK Broadband, thus it is right and fair for Netflix to shoulder the payment obligation,” the court said. Netflix has filed an appeal.

SK Broadband said Netflix consumes 1,200Gbps of traffic on its network as of September 2021, surging from 50Gbps in May 2018. The company said the U.S. streamer’s continuous denial to pay fees despite the huge traffic load has incurred an exponential loss to the company. Industry experts estimate the network usage fees would reach up to 100 billion won ($84.4 million).

The company also said that its loss is directly associated with the profit which Netflix gains by using its networks, and there is no ground to allow Netflix to use its network free of charge.

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