The KCC said Facebook cut a faster local server and rerouted the traffic to a slower server in Hong Kong without prior notice, while negotiations on network usage fees with the local operators were still under way, thus affecting Korean customers. Facebook Korea claimed it did not reroute the server abroad to intentionally slow down the network speed.
In its decision, the Seoul court says Facebook could not predict the rerouting would disrupt the network service and acknowledges the content provider's right to freely redirect network routes.
The KCC has announced it will appeal the court decision, while Facebook applauded the ruling.
Local operators worry that the court ruling could give an advantage to global content providers, including YouTube and Netflix, when they negotiate their network usage fees. Operators believe that global IT firms pay little for maintaining the heavy data traffic generated by online streaming services, which is a disadvantage to domestic companies that pay hefty fees for using their network.
South Korean internet search engine operator Naver and messaging app Kakao pay over KRW 70 billion and KRW 40 billion, respectively, to use the network each year, according to the companies' records. On the other hand, Korean IT platform companies claim the ruling gives more room for them to freely create content without having to worry about network quality.
