Netflix sues SK Broadband, refuses to share internet network costs

Video streaming giant Netflix has sued local internet network operator SK Broadband, according to industry sources Tuesday.

The Korean unit of the US-based firm has reportedly filed a civil suit at the Seoul Central District Court arguing that it is not liable to pay for using SK Broadband’s internet network or other maintenance or upgrade costs.

The two companies have been clashing over the issue since last year, as the Korean provider asked the traffic-heavy streaming service to share network costs.

They failed to reach a consensus, with Netflix refusing to share the data traffic costs.

Netflix, since last year, has claimed that the company can ease traffic by installing its own “open connect appliances” at internet service provider facilities.

In November, SK Broadband approached the Korea Communications Commission to arbitrate the issue, claiming Netflix has refused to pay for the use of its internet networks.

The KCC’s arbitration results are expected in May.

By Shim Woo-hyun (ws@heraldcorp.com)