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High Severity

Revenue-Driven Enforcement Chills Innovation

The Authority's funding depends on regulatory fees (1% of gross revenue) from all ICT businesses and administrative penalties it imposes, creating a direct financial incentive to maximize licensing requirements, compliance burdens, and enforcement actions. This revenue-dependent structure disproportionately burdens startups and innovators with thin margins while encouraging aggressive regulation that contradicts the bill's stated commitment to innovation support through the regulatory sandbox and risk-based approach. The enforcer profits from enforcement—a fundamental conflict of interest that will systematically discourage market entry and entrepreneurship.