Netflix, SK Broadband end dispute over network traffic costs

Firms say they have reached a partnership to release joint products and cooperate on artificial intelligence.

South Korean internet service provider SK Broadband and Netflix have announced they will end all lawsuits with each other following a dispute over whether Netflix should pay for costs from increased network traffic and maintenance work.

SK Broadband and parent SK Telecom said in a joint statement with Netflix on Monday that they had agreed on a partnership to release joint products and seek ways to use artificial intelligence (AI) products being developed by SK.

“Moving forward, SK Broadband and Netflix will end all disputes with the signing of today’s partnership, and collaborate as partners for the future,” the statement said.

Spokespeople for Netflix and SK Broadband said both had withdrawn their lawsuits.

The two sides have been in a legal dispute since 2020 over whether content providers that generate large volumes of traffic should pay for network use, or whether that would go against the principle of “net neutrality” and lead to higher costs for consumers.