Korea levies $327,067 fine on Twitch over service suspension.

In a significant development, the Korean Telecommunications Commission (KCC) has imposed a fine of 435 million won ($327,067) on Twitch, the U.S. live video streaming platform. The penalty comes in response to Twitch's suspension of its video-on-demand (VOD) service in Korea last year, a move that allegedly violated local telecommunications business laws and impacted user interests.

Violation Details: Twitch Interactive, the operator of the platform, initiated a series of changes in September 2022, including a reduction in video quality from 1080p to 720p. Five months later, the VOD service was terminated, prompting the KCC to investigate the matter. The commission determined that Twitch's suspension of the VOD service violated local telecommunications business laws, as it undermined the interests of users.

Unanswered Questions and Additional Fine: The KCC requested relevant data from Twitch to assess whether there was a justifiable reason for limiting the maximum viewing quality. However, Twitch declined the request, citing contractual confidentiality obligations. As a result, the commission imposed an additional fine of 15 million won on Twitch for its failure to implement a system preventing the distribution of illegal footage.

Twitch's Defense Rejected: Twitch argued that livestreaming and VOD services are not independent telecommunications services and that the suspension was a necessary business decision to maintain service provision in Korea. However, the KCC did not accept these claims, asserting that the suspension adversely affected users and violated local regulations.

Corrective Measures and Future Operations: As part of corrective measures, the KCC has mandated that Twitch discloses the receipt of these orders and implements preventive measures before resuming business operations in Korea in the future. Additionally, Twitch is instructed to prepare various user protection measures, including refunds, as the platform is set to conclude its operations in Korea later this month.

Conclusion: The fine levied by the KCC on Twitch underscores the regulatory scrutiny faced by digital platforms and the importance of adhering to local telecommunications laws. This incident highlights the need for transparent communication and compliance with regulatory requirements as streaming services continue to navigate international markets.