Part 2Networks, services and the radio spectrum

Chapter 1Electronic communications networks and services

Security of public electronic communications networks and services: designated vendor directions

F1105Z19Amount of penalty

(1)

The amount of a penalty that may be specified in a notification under section 105Z18 is such amount as the Secretary of State determines to be—

(a)

appropriate; and

(b)

proportionate to the contravention in respect of which it is imposed.

(2)

The amount may not exceed 10 per cent of the turnover of the public communications provider’s relevant business for the relevant period, subject to subsection (3).

(3)

In the case of a penalty specified under section 105Z18(7), the amount may not exceed £100,000 per day.

(4)

Where the notification relates to a contravention of a requirement under section 105Z7—

(a)

subsection (2) has effect as if the maximum amount specified were £10 million; and

(b)

subsection (3) has effect as if the maximum amount specified were £50,000 per day.

(5)

The Secretary of State may by regulations amend this section so as to substitute a different maximum penalty for the maximum penalty for the time being specified in subsection (3) or (4)(a) or (b).

(6)

No regulations are to be made containing provision authorised by subsection (5) unless a draft of the regulations has been laid before Parliament and approved by a resolution of each House.

(7)

For the purposes of this section—

(a)

the turnover of a person’s relevant business for a period is to be calculated in accordance with such rules as may be set out in an order under section 97(3)(a); and

(b)

what is to be treated as the network, service, facility or business by reference to which the calculation of that turnover falls to be made is to be determined in accordance with such provision as may be made by an order under section 97(3)(a).

(8)

In this section—

“relevant business”, in relation to a person, means (subject to the provisions of an order under section 97(3)(a)) so much of any business carried on by the person as consists in any one or more of the following—

(a)

the provision of a public electronic communications network;

(b)

the provision of a public electronic communications service;

(c)

the making available of facilities that are associated facilities by reference to such a network or service;

“relevant period”, in relation to a contravention by a person of a requirement imposed by a designated vendor direction, means—

(a)

except in a case falling within paragraph (b) or (c), the period of one year ending with the 31st March next before the time when notification of the contravention was given under section 105Z18;

(b)

in the case of a person who at that time has been carrying on that business for a period of less than a year, the period, ending with that time, during which the person has been carrying it on; and

(c)

in the case of a person who at that time has ceased to carry on that business, the period of one year ending with the time when the person ceased to carry it on.