The Network Usage Fee Case: Netflix vs. SK Broadband

On the afternoon of 20th, the fourth hearing of the appeal trial of a civil lawsuit to confirm the absence of debt for network use by SK Broadband and Netflix was held at the Seoul High Court.
A fierce battle ensued over whether to pay the network usage fee according to the network connection method.

The attorneys for both sides argued fiercely, with Netflix claiming that it should not have to pay the network usage fee because it is the established practice of the internet for different networks to be directly connected. SK Broadband, on the other hand, argued that Netflix should have to pay the fee because it has agreed to do so in other countries. It is unclear at this time what the outcome of the trial will be.

When Netflix launched its Korean service in January 2016, it first linked its network with SK Broadband at an Internet Exchange Point (SIX) located in Seattle, the U.S.
"We are currently connecting with ISPs or CPs in various IXs through public or private peering depending on the situation," SK Broadband said. "When overseas CPs connect with SK Broadband through private peering, they are paying a price."
SK Broadband's lawyer said, "At the time of overseas transmission, there was a practice of unpaid interconnection, but according to the 2018 data, Netflix directly linked to Comcast and agreed to pay for network usage fees," adding, "In France, Netflix agreed to pay for Orange S.A.."

In response to SK Broadband's claim, Netflix pointed out again, "If different networks are directly connected, it is the Internet's established trading practice to send traffic at its own cost from that point to customers."