Continuous YouTubers Posting Videos Opposing Network Usage Fees Shakes National Assembly
Democratic Party, Sponsor of Related Bill, Suddenly Turns Away from Leader Lee Jae-myung's Remarks
Lee Jae-myung, leader of the Democratic Party of Korea, is attending an emergency party meeting held at the National Assembly on the 5th and is talking with Supreme Council member Jeong Cheong-rae during the meeting. Photo by Yoon Dong-joo doso7@
[Asia Economy Reporter Lim Hye-seon] "We receive requests from YouTubers to 'voice their opinions on the network usage fee conflict.' I thought they were not stakeholders, but now I see them as stakeholders."
A famous creator with 2.3 million subscribers said this while posting a video about the network usage fee conflict. The creator explained, "Agencies, MCNs, and YouTube have been contacting me," adding, "YouTube's statement that if this bill leads to a legal amendment, it may have to consider the difficult decision to change its business operations in Korea can be interpreted as potentially imposing additional burdens on domestic YouTubers to prevent their own losses."
Global content providers (CPs) such as Google are using domestic YouTubers to sway public opinion in order to block the legislation of the network usage fee amendment. It is pointed out that they are leveraging YouTubers, who are the 'relatively weaker party,' through their dominant position. The 'network usage fee bill' is an amendment to the Telecommunications Business Act that imposes an obligation on CPs generating large-scale traffic to maintain network quality (pay network usage fees). Netflix and Google (YouTube), which account for half of South Korea's internet traffic, are the targets.
On the 28th, a YouTube advertisement by Google, which has recently been generating public opposition to the Network Usage Fee Act, was displayed at a large shopping mall in Yeouido, Seoul, and the subway connecting passage. Photo by Jinhyung Kang aymsdream@
Google YouTube launched an 'Internet Protection Campaign' asking people to participate in a petition opposing the network usage fee bill, starting from the legislative public hearing held last month. The number of signatories for the 'Net Neutrality Protection Petition' conducted by Open Net, which represents them, has exceeded 160,000. Another global CP, Twitch, recently lowered the video quality to a maximum of 720p only on its domestic service, citing 'increased operating costs in Korea.' Although Twitch did not directly mention the network usage fee, the industry views this as an indirect opposition move.
The National Assembly is struggling to find a clear stance amid Google's offensive. Especially within the ruling Democratic Party, which proposed the bill, there is confusion. Lee Jae-myung, the leader of the Democratic Party who proposed the 'network usage fee bill,' responded on Twitter on the 2nd to a user pointing out problems with the bill, saying, "I will carefully review this. There seem to be issues with the network usage fee bill." Meanwhile, Chung Cheong-rae, chairman of the Science, Technology, Information and Broadcasting Committee, expressed to Ddanji Ilbo, "In my view, this is a narrow and distorted patriotic marketing effort to protect a few domestic Internet Service Providers (ISPs), which risks causing the collapse of domestic CPs. Especially, catastrophic damage is expected to K-CPs with strong K-content competitiveness."
The network usage fee bill was also a pledge by Lee during his presidential campaign. It was selected as one of the '22 Major Livelihood Legislative Tasks' that the Democratic Party plans to focus on during this year's regular National Assembly session. A National Assembly official said, "It seems that an important ICT issue is being exploited for populism," adding, "Global CPs have actively involved users to intervene in Korean politics, so this needs to be thoroughly examined." Given the situation, the Democratic Party announced that it will closely review the bill again at the policy committee level. A Democratic Party official stated, "We will firmly respond to any attempts to exert political pressure on the National Assembly discussions for corporate interests," and "We will thoroughly address many concerns about the bill to prevent industrial and national damage."
Network usage fees are an issue not only in Korea but globally. The Global System for Mobile Communications Association (GSMA) issued a statement on the 3rd (local time), saying, "As demand for digital content surges, the amount of data (traffic) crossing communication networks is increasing exponentially," pointing out that "more than half of total internet traffic is generated by six global companies including Google and Netflix." GSMA emphasized, "All sectors of the internet ecosystem should have the opportunity to earn fair revenue in a competitive market," and "Discussions should ensure proper compensation for digital infrastructure investments to support the ecosystem's long-term growth."
Voices calling for sharing network usage fees are also rising in Europe. Last month, CEOs of 17 telecommunications companies belonging to the European Telecommunications Network Operators' Association (ETNO) issued a joint statement asserting that "the largest traffic generators should make a fair contribution to the significant costs imposed on European networks."
Meanwhile, the National Assembly's Science, Technology, Information and Broadcasting Committee will summon Nancy Mable Walker, head of Google Korea; Peter Aldenwood, head of Apple Korea; and Reginald Schomtonson, head of Netflix Services Korea, to the comprehensive audit of the Korea Communications Commission scheduled for the 21st.
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