Seoul: The decadelong controversial ban on handset subsidies will be lifted starting next week as part of efforts to lower the financial burden on consumers for communications service, the science ministry announced Thursday. The Mobile Device Distribution Improvement Act, which currently prohibits mobile carriers from providing excessive discounts or illegal subsidies to customers, will be nullified beginning July 22, the ministry confirmed.

According to Yonhap News Agency, the National Assembly passed a motion to scrap the act late last year. The ban, implemented in 2014, was initially designed to bring transparency to the market by curbing subsidies that exceeded legal limits and fostering competition among mobile carriers.

However, the policy has faced criticism for restricting healthy competition by preventing mobile carriers from offering legal subsidies. This restriction consequently limited opportunities for customers to purchase cell phones at reduced prices.