“Constitutional decision on phone subsidies restriction law price cap”… Constitutional court unanimously agree
Jung Yoon Hee | yuni@ | 2017-05-26 09:45:37
The constitutional court has made a constitutional decision on the cellular phone subsidy (support fee) ceiling. The decision to limit subsidies, which is considered to be the core of the handset distribution structure improvement law, has been criticized for limiting free market competition. Fierce dispute is expected due to this decision.
According to the constitutional complaint filed by the constitutional court on May 25, Article 4 (1) of the act on the improvement of the distribution structure of mobile communication terminal equipment. The court decision has been made under unanimous agreement.
The constitution court stipulates that "the upper limit of the subsidy is to dictate the essentials of the upper limit and the limit of the upper limit. It is not against the principle of `prohibition of comprehensive delegation`. The court also added, "We will prevent the excessive subsidy competition with the subsidy ceiling, and further establish the fair and transparent distribution order of the mobile communication terminal equipment to protect the sound development of the mobile communication industry and the interests of users". The constitution court ruled that the ceiling on mobile phone subsidies contributed greatly to market stability by eliminating costly competition among consumers and discrimination against consumers.
Based on the court decision, the ceiling of the subsidy will remain in effect until the end of September of this year. The ceiling for the subsidy (3-year limit) introduced with the implementation of the October 1, 2014 law which allows the commission to adjust the subsidy ceiling every quarter, within the range of KRW 250,000 to KRW 350,000. It started at KRW 300,000At the time of the enforcement of the phone subsidies restriction law. However was criticized for causing the market stagnation.
A great deal of controversy is expected in the market due to the decision of `Constitutional decision` of subsidy ceiling system. The ceiling system has been criticized for blocking market competition and causing the government to overly intervene in price policy, making the nation "irrational consumer". It has also been argued that the government is actually leading mobile carrier price fixing. Consumers and the telecommunications industry are also complaining that "cheap price is a crime" and "making the whole nation a irrational consumer". Even if there is an upper limit, there is criticism that illegal subsidies are becoming more vocal by payback (subsidies that are paid at a fixed price and paid in cash). In fact, the so-called `Galaxy S8 Grand Story` in which excessive subsidies were put into the latest premium smartphone Galaxy S8 occurred at the time of the golden holiday earlier this month.
Currently, there are a number of proposals for amendments to the main law, including the abolition of ceiling of the subsidy program. President Moon Jae-in also pledged to abolish the ceiling of the budget in the presidential election period. Therefore the National Assembly will decide whether to terminate the ceiling of the subsidy in June or not.
By Jung Yoon Hee yuni@
[ copyright ⓒ The Digitaltimes ]
According to the constitutional complaint filed by the constitutional court on May 25, Article 4 (1) of the act on the improvement of the distribution structure of mobile communication terminal equipment. The court decision has been made under unanimous agreement.
The constitution court stipulates that "the upper limit of the subsidy is to dictate the essentials of the upper limit and the limit of the upper limit. It is not against the principle of `prohibition of comprehensive delegation`. The court also added, "We will prevent the excessive subsidy competition with the subsidy ceiling, and further establish the fair and transparent distribution order of the mobile communication terminal equipment to protect the sound development of the mobile communication industry and the interests of users". The constitution court ruled that the ceiling on mobile phone subsidies contributed greatly to market stability by eliminating costly competition among consumers and discrimination against consumers.
Based on the court decision, the ceiling of the subsidy will remain in effect until the end of September of this year. The ceiling for the subsidy (3-year limit) introduced with the implementation of the October 1, 2014 law which allows the commission to adjust the subsidy ceiling every quarter, within the range of KRW 250,000 to KRW 350,000. It started at KRW 300,000At the time of the enforcement of the phone subsidies restriction law. However was criticized for causing the market stagnation.
A great deal of controversy is expected in the market due to the decision of `Constitutional decision` of subsidy ceiling system. The ceiling system has been criticized for blocking market competition and causing the government to overly intervene in price policy, making the nation "irrational consumer". It has also been argued that the government is actually leading mobile carrier price fixing. Consumers and the telecommunications industry are also complaining that "cheap price is a crime" and "making the whole nation a irrational consumer". Even if there is an upper limit, there is criticism that illegal subsidies are becoming more vocal by payback (subsidies that are paid at a fixed price and paid in cash). In fact, the so-called `Galaxy S8 Grand Story` in which excessive subsidies were put into the latest premium smartphone Galaxy S8 occurred at the time of the golden holiday earlier this month.
Currently, there are a number of proposals for amendments to the main law, including the abolition of ceiling of the subsidy program. President Moon Jae-in also pledged to abolish the ceiling of the budget in the presidential election period. Therefore the National Assembly will decide whether to terminate the ceiling of the subsidy in June or not.
By Jung Yoon Hee yuni@