A heated discussion took place in the parliament of South Korea on Friday about a proposed piece of legislation that would require international content providers such as Netflix (NFLX stock) and Alphabet’s (GOOGL stock) Google to pay South Korean network costs.
The discussions are analogous to those that are taking place in Europe, where a number of nations have requested that the European Commission draft legislation to ensure that large technology companies contribute financially to the expansion of the nation’s telecommunications infrastructure. This is in response to the rising popularity of video streaming and other forms of data consumption.
In South Korea, a number of different legislative proposals have been put up in the intention of coercing businesses into paying what proponents of the reform refer to as a fair price.
Even though the hearing is anticipated to come to a close late on Friday, many people believe that the idea has not yet reached a point where it is ready to forward to the subsequent stage of the legislative process.
Are GOOGL Stock and NFLX Stock Affected By the Decision?
“More than a third of all domestic traffic is accounted for by Google (GOOGL) and Netflix (NFLX) together… It is in the best interest of multinational corporations to conduct more proactive reviews of the issue “During the session, congressman Hong Suk-joon made the following statement.
Others, however, were of the opinion that this would be a bad idea since it would encourage large tech corporations to increase their prices, which would be detrimental to South Korean content producers.
According to the leader of the parliamentary committee that is in charge of monitoring the situation, Jung Chung-rae, “it threatens the collapse of local content providers while seeking to safeguard a tiny number of domestic internet service providers.”
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