The Korea Telecommunications Commission slapped a fine on Twitch for suspending its video-on-demand service.
Twitch has been fined 435 million won or $327,00 by Korea for suspending the video-on-demand (VOD) service in the country in 2023. The Korea Telecommunications Commission (KCC) concluded that the VOD service suspension violated the local telecommunications business law by undermining user interests.
Twitch Interactive, the service operator, reduced the live stream video quality from 1080p to 720p in September 2022 and terminated the VOD service five months later in South Korea. To determine whether Twitch had legitimate reasons for restricting the highest viewing quality, the Korean Telecommunications Commission requested relevant data. However, Twitch declined the KCC’s request, citing contract confidentiality obligations.
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Twitch Fined By The Korean Telecommunications Commission
According to the South Korean media portal Yonhap, the Korean Telecommunications Commission slapped a fine of 435 million won ($327,000) on Friday, stating that Twitch violated the local telecommunications business law after suspending the VOD services. The KCC also imposed another fine of 15 million won on Twitch for failing to implement the system to prevent the distribution of illegal footage.
Twitch stated that the suspension was necessary for businesses to keep offering the service in Korea. Still, the commission rejected this argument, stating that live streaming and video-on-demand services are not independent telecommunications services.
The KCC has mandated that Twitch disclose the receipt of these orders and take preventative action before resuming business operations in Korea as part of the corrective measures.
In December 2023, Twitch announced that the company would end service in South Korea because operating there is expensive. CEO Dan Clancy said that operations in Twitch in South Korea are incredibly high, and the company will stop service in Korea on February 27, 2024.
Streamers who selected Korea as their onboarding country will no longer be able to monetize through Twitch. In addition, Twitch users in South Korea can no longer purchase any content on the platform. Content creators who selected Korea as their country of residence will receive their final payout in March 2024.
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