SK Broadband Co., a major South Korean internet service provider, said Monday that it will end a yearslong legal battle over network usage fees against US streaming giant Netflix.
“We agreed to withdraw all disputes in the interests of the greater success of both companies, reflecting the common intention of putting values on customers first,” an SK Broadband official said without giving details of the agreement. “But our position on the necessity of network usage fees remains unchanged.”
The latest breakthrough comes almost three years after the two companies clashed over network usage fees, a thorny issue globally amid massive traffic triggered by streaming services like Netflix and YouTube.
For years, SK Broadband asked Netflix to pay network usage fees, accusing the US firm of “free-riding” on its network, while Netflix refused to do so, citing net neutrality, which refers to the principle that internet service providers must treat all international communications equally regardless of content, platform or type of equipment.
The dispute also gained global attention as it was a battle over who is responsible for maintaining network quality. Launching the legal fight three years ago, SK Broadband claimed the amount of traffic generated by Netflix surged about 24 times from 50 gigabits per second in May 2018 to 1,200 Gbps in September 2021 amid the popularity of a slew of hit series.
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