Communications Act 2003

Liability of fellow subsidiary entities for failures by subsidiary entities U.K.

[F1 5 (1) This paragraph applies where—

(a) OFCOM are satisfied that there are grounds for giving a person—

(i) a confirmation decision which requires the person to take steps or imposes a penalty (or both), or

(ii) a penalty notice,

in respect of a service of a type specified in sub-paragraph (2) that is or was at any time provided by the person,

(b) the person is an entity (“E”),

(c) E is a subsidiary undertaking,

(d) there is another entity which is a fellow subsidiary undertaking in relation to E (a “fellow subsidiary entity”), and

(e) OFCOM are satisfied that the acts or omissions of the fellow subsidiary entity contributed to the failure to which the confirmation decision or penalty notice relates.

(2) The types of service referred to in sub-paragraph (1)(a) are—

(a) a regulated television selection service;

(b) a designated internet programme service;

(c) a designated radio selection service;

(d) a relevant internet radio service.

(3) The confirmation decision may be given—

(a) to E alone, or

(b) jointly to E and to a fellow subsidiary entity.

(4) Before giving a penalty notice to a fellow subsidiary entity, or giving a confirmation decision to a fellow subsidiary entity which was not previously given a provisional notice of contravention relating to the same matter, OFCOM must give that entity an opportunity to make representations to OFCOM about—

(a) the matters contained in the confirmation decision or the penalty notice, and

(b) whether joint and several liability would be appropriate.

(5) If a confirmation decision or penalty notice is given to entities jointly under sub-paragraph (3)(b), those entities are jointly and severally liable to comply with the requirements or (as the case may be) pay the penalty imposed by the decision or notice.

(6) See also paragraph 4 of Schedule 16A.]

Textual Amendments

F1 Sch. 16B inserted (23.8.2024) by Media Act 2024 (c. 15), s. 55(3)(g), Sch. 11; S.I. 2024/858, reg. 2(1)(z5)