Increase in the Prices of Mobile Operators and Mass Termination of Subscription Agreements
As of 23 May 2014, the usage fee for the radio frequency spectrum was increased for Croatian operators. As a result of this increase, three of Croatia's largest operators have announced an increase in the price of their mobile network services, as well as the introduction of additional fees for recipients of public communication services. The announced price increase will range from between 10 and 15%.
Customers with subscription agreements are entitled to terminate their agreements without penalties, due to the above mentioned price increase by the operators. Currently, mass termination of subscription agreements is taking place, specifically by customers who purchased mobile phones for a reduced price under a 2 year subscription term.
The Croatian fee for the right to use the radio frequency spectrum now represents the highest fee in any EU member state or country in the SEE region.
Croatia Draws up New Laws on Real Estate Expropriation and Compensation and Pension Insurance Companies
Act on Expropriation, Compensation and Ordinance on Real Estate Value Estimation
In order to expedite the process for investments in real estate subject to expropriation by the owner and to improve transparency and safety of the process, Croatia has recently enacted a New Act on Expropriation and Compensation. The New Act has improved the process, sequence and terms which provide real estate owners with more protection and a speedier process.
The value of real estate subject to expropriation is determined on the basis of an Ordinance issued by the Ministry of Construction, which means the value of real estate is determined equally in all procedures and on all state territories.
Regulations on Capital Adequacy of Pension Insurance Companies
The Croatian Financial Services Supervisory Agency (CFSSA) has adopted regulations on capital adequacy of pension insurance companies, which represents a new model of pension insurance company and prescribes the conditions for its legal business operations. By virtue of a new Rulebook, the CFSSA is providing a warning that only companies that fulfil the preconditions set out in the new Rulebook can legally manage pension insurance operations, in order to prevent cases such as ROYAL Pension Insurance d.d., a company that was operating in the pension insurance business without a valid license and or a legal basis.