Netflix files appeal against court ruling

SEOUL: Video streaming giant Netflix on Thursday said it has filed an appeal against a recent Seoul court decision that sided with local Internet service provider (ISP) SK Broadband Co. in a dispute over network usage fees.

Last month, the Seoul Central District Court dismissed a plea from Netflix that the video streaming service operator is not liable to pay network usage fees to SK Broadband. The court also rejected Netflix's request to confirm that it has no obligation to negotiate with the South Korean company, reports Yonhap.

"There has never been a case globally where a court or a government forced content providers to pay for network fees," the video streaming company said in a statement.

"The decision may topple the global Internet ecosystem developed by content providers and Internet service providers," it added. The dispute dates back to April last year when the local unit of Netflix filed a lawsuit against SK Broadband after the latter demanded network usage fees from the streaming company, accusing it of free-riding on its network despite being responsible for heavy traffic.

Netflix has insisted that it has no obligation to pay network usage fees as ISPs are responsible for managing their networks and network usage fee demands for specific services violate the principle of net neutrality that prohibits content discrimination.(IANS)

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