Netflix Loses First Court Case Over Network Usage Fee

Global streaming giant Netflix lost a South Korean court case on Friday, in the world's first ruling over a dispute about whether over-the-top service providers should pay internet service companies for network usage. From a report: In April 2020, Netflix filed a complaint against SK Broadband, rejecting the Korean internet provider's demand that the streaming platform pay for network use in South Korea. The legal action has drawn attention because it marks the world's first legal conflict between an OTT platform and a broadband company. South Korea is one of the world's fast-growing OTT markets, where Netflix posted triple-digit earnings growth in 2020 from the year previous. On June 25, the Seoul Central District Court rejected the case brought forth by Netflix, while dismissing Netflix's claim that the OTT platform has no obligation to negotiate with SK Broadband over the network use charges. "It needs to be determined by negotiations between the parties involved whether or not some fees will be paid, or whether they enter an agreement in accordance with the principle of freedom of contract," the court ruling reads.

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