“Free” phones in new mobile deals now considered a financial loan

Telecom companies that offer mobile handsets on installment now have to comply to the same rules as "normal" credit suppliers, including applying for a license with the Authority for Financial Markets, Finance Minister Jeroen Dijsselbloem wrote to Parliament on Wednesday, Z24 reports. According to Dijsselbloem, codes of conduct the telecom companies proposed for issuing credit in the sector have failed to meet the European roles on consumer credit and comply to the Competition Act. The companies hoped that a sufficient code of conduct give them exemption from stringent regulations connected to issuing credit to consumers. In 2014 the Supreme Court ruled that handsets on installment should fall under the Act of Financial Supervision. Dijsselbloem will now enforce that in a "reasonable time".