Wednesday, June 29, 2022

Netflix Sued by S. Korean Broadband Company Over ‘Squid Game’ Traffic

Netflix is being sued by a South Korean broadband company over a surge in traffic from the streaming giant’s new Squid Game series.

Squid Game is the streaming giant’s latest hit, and has caused a surge in viewers, as well as the corresponding internet usage. SK Broadband is suing over that usage, according to Reuters, wanting Netflix to pay for the increased traffic.

The two companies have a history of legal issues. Although the latest lawsuit has been brought by SK Broadband, Netflix sued last year to avoid paying for network usage. While most other companies, such as Apple, Amazon and Facebook pay such fees, Netflix and YouTube do not — despite being the top two internet traffic generators.

According to Reuters the courts have so far sided with SK Broadband, saying the company provides “a service provided at a cost.” The Seoul Central District Court called it “reasonable” for Netflix to be “obligated to provide something in return for the service,” dealing the company a major blow in its case. While Netflix is appealing its loss, the decision likely encouraged SK Broadband to launch this latest lawsuit.

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