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Netflix Sued over Traffic Surge on "Squid Game" By South Korean Internet Provider

On Friday 1st October 2021, the South Korean internet service provider sued Netflix ,claiming that the streaming platform's popular show 'Squid game' caused a surge in network traffic, hence Netflix has been called on to pay for network usage.

The internet service provider said traffic from Netflix on its network has risen from 50 Gigabits per second(Gbps) in May 2018 to 1200 Gigabits per second(Gbps) as of September 2021. In response Netflix has said it will review South Korea's Broadband claim and in the meantime ,it intends to work with the internet provider to ensure customers are not affected.

Netflix being the second biggest network traffic generator in South Korea after YouTube, but unlike Amazon, Facebook and Apple both companies do not pay network usage fees to South Korea Broadband.

Early this year a Seoul court ruled against Netflix has stated that the company should reasonably pay something to the internet service provider for network usage and South Korea's Broadband suit comes just after that. Several lawmakers in the country have also spoken out against online platforms that do not pay a network usage fee despite using high bandwidth. Netflix in July appealed against the court ruling, arguing that it has no obligation to pay any fees as internet service providers are responsible for managing their network. On Wednesday, 29th September 2021,Netflix issued a statement claiming it has contributed to the creation of about 16000 jobs in South Korea stemming from its investment of about 65 million USD which has led to an economic effect worth 4.7 billion USD.

In 2020, South Korean lawmakers passed an amendment to the country's telecommunication Business Act that effectively holds content providers like Netflix and YouTube liable to network issues stemming from high consumption of their content. Several experts have argued that the law violates the principle of net neutrality. Net Neutrality is a key principle of the open internet that prevents internet service providers from discriminating against certain types of data. Advocates of the principle claim that Korea's policy only serves to hamper smaller content providers as larger providers will simply be able to pay internet service providers for a more seamless service.

Content created and supplied by: kamame (via Opera News )

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