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Communications Bill


Communications Bill
Schedule 13 — Financial penalties under the Broadcasting Acts
Part 2 — Broadcasting Act 1996

    426

 

              “(2A)                The maximum penalty is whichever is the greater of—

                    (a)                   £250,000; and

                    (b)                   5 per cent. of the aggregate amount of the share of multiplex

revenue attributable to him for his last complete accounting

period falling within a period for which his licence has been

5

in force (‘the relevant period’).

              (2B)                In relation to a person whose first complete accounting period falling

within the relevant period has not ended when the penalty is

imposed, subsection (2A)(b) is to be construed as referring to 5 per

cent. of the amount which OFCOM estimate to be the share of

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multiplex revenue attributable to him for that accounting period.

              (2C)                Section 57(1) and (3) applies for determining or estimating the share

of multiplex revenue attributable to a person for the purposes of

subsection (2A) or (2B) above.”

          (3)      In subsection (4) of that section (maximum penalty to be imposed on holder

15

of local radio multiplex licences for failure to comply with conditions or

directions), for “£50,000” there shall be substituted “£250,000”.

          (4)      This paragraph applies in relation to a failure to comply with a condition or

direction only if it is one occurring after the commencement of this

paragraph.

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Digital sound programme licences

  20      (1)      In subsection (2) of section 62 (penalty for failure by holder of digital sound

programme licence to comply with licence conditions or directions), for the

words from “whichever is the greater” onwards there shall be substituted

“the maximum penalty given by subsection (2A).”

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          (2)      For subsection (3) of that section (maximum penalties) there shall be

substituted—

              “(2A)                The maximum penalty is whichever is the greater of—

                    (a)                   £250,000; and

                    (b)                   5 per cent. of the aggregate amount of the shares of multiplex

30

revenue attributable to him in relation to national radio

multiplex revenue in respect of relevant accounting periods.”

          (3)      In subsection (4) of that section (meaning of “relevant accounting period”),

for “subsection (3)” there shall be substituted “subsection (2A)”.

          (4)      In subsection (5) of that section, for “not yet ended, then for the purposes of

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subsection (3)” there shall be substituted “not ended when the penalty is

imposed, then for the purposes of this section”.

          (5)      After that subsection there shall be inserted—

              “(5A)                A determination or estimate for the purposes of subsection (2A) or

(5) above of the share of multiplex revenue attributable to a person—

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                    (a)                   in the case of a contravention relating to a digital sound

programme service provided for inclusion in a radio

multiplex service, is to be in accordance with section 57(2)

and (3); and

                    (b)                   in any other case, is to be in accordance with section 15(2) and

45

(3).”

 

 

Communications Bill
Schedule 13 — Financial penalties under the Broadcasting Acts
Part 2 — Broadcasting Act 1996

    427

 

          (6)      In subsection (6) of that section (maximum penalty where licence is a local

digital sound programme licence), for “£50,000” there shall be substituted

“£250,000”.

          (7)      This paragraph applies in relation to a failure to comply with a condition or

direction only if it is one occurring after the commencement of this

5

paragraph.

Licences for digital additional sound services

  21      (1)      In subsection (2) of section 66 (penalty for failure by holder of digital

additional sound services licence to comply with licence conditions or

directions), for the words from “whichever is the greater” onwards there

10

shall be substituted “the maximum penalty given by subsection (2A).”

          (2)      For subsection (3) of that section (maximum penalties) there shall be

substituted—

              “(2A)                The maximum penalty is whichever is the greater of—

                    (a)                   £250,000; and

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                    (b)                   5 per cent. of the aggregate amount of the shares of multiplex

revenue attributable to him in relation to national radio

multiplex revenue in respect of relevant accounting periods.”

          (3)      In subsection (4) of that section (maximum penalty where licence is a local

digital sound programme licence), for “£50,000” there shall be substituted

20

“£250,000”.

          (4)      In subsection (5) of that section (meaning of “relevant accounting period”)

for “subsection (3)” there shall be substituted “subsection (2A)”.

          (5)      In subsection (6) of that section, for “not yet ended, then for the purposes of

subsection (3)” there shall be substituted “not ended when the penalty is

25

imposed, then for the purposes of this section”.

          (6)      After that subsection there shall be inserted—

              “(6A)                A determination or estimate for the purposes of subsection (2A) or

(6) above of the share of multiplex revenue attributable to a person—

                    (a)                   in the case of a contravention relating to a digital additional

30

programme service provided for inclusion in a radio

multiplex service, is to be in accordance with section 57(2)

and (3); and

                    (b)                   in any other case, is to be in accordance with section 15(2) and

(3).”

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          (7)      This paragraph applies in relation to a failure to comply with a condition or

direction only if it is one occurring after the commencement of this

paragraph.

Power to amend digital television penalties

  22       For section 69(2) and (3) (provisions that may be amended and negative

40

resolution procedure) there shall be substituted—

              “(2)                The provisions referred to in subsection (1) are—

                    (a)                   section 53(5)(a) and (b)(i);

                    (b)                   section 59(2A)(a) and (4);

 

 

Communications Bill
Schedule 14 — Media ownership rules
Part 1 — Channel 3 services

    428

 

                    (c)                   section 62(2A)(a) and (6); and

                    (d)                   section 66(2A)(a) and (4).

              (3)                                No order is to be made under subsection (1) unless a draft of the

order has been laid before Parliament and approved by a resolution

of each House.”

5

Schedule 14

Section 342

 

Media ownership rules

Part 1

Channel 3 services

Ban on newspaper proprietors holding Channel 3 licences

10

  1       (1)      A person is not to hold a licence to provide a Channel 3 service if—

              (a)             he runs a national newspaper which for the time being has a national

market share of 20 per cent. or more; or

              (b)             he runs national newspapers which for the time being together have

a national market share of 20 per cent. or more.

15

          (2)      A person is not to hold a licence to provide a regional Channel 3 service if—

              (a)             he runs a local newspaper which for the time being has a local market

share of 20 per cent. or more in the coverage area of the service; or

              (b)             he runs local newspapers which for the time being together have a

local market share of 20 per cent. or more in that coverage area.

20

          (3)      For the purposes of this paragraph, where there is a licence to provide a

Channel 3 service, each of the following shall be treated as holding that

licence—

              (a)             the actual licence holder; and

              (b)             every person connected with the actual licence holder.

25

Restrictions on participation

  2       (1)      A person who is—

              (a)             the proprietor of a national newspaper which for the time being has

a national market share of 20 per cent. or more, or

              (b)             the proprietor of national newspapers which for the time being

30

together have a national market share of 20 per cent. or more,

                   is not to be a participant with more than a 20 per cent. interest in a body

corporate which is the holder of a licence to provide a Channel 3 service.

          (2)      A person who is the holder of a licence to provide a Channel 3 service is not

to be a participant with more than a 20 per cent. interest in a body corporate

35

which is a relevant national newspaper proprietor.

          (3)      A body corporate is not to be a participant with more than a 20 per cent.

interest in a body corporate which holds a licence to provide a Channel 3

service if the first body corporate is one in which a relevant national

newspaper proprietor is a participant with more than a 20 per cent. interest.

40

 

 

Communications Bill
Schedule 14 — Media ownership rules
Part 1 — Channel 3 services

    429

 

          (4)      A restriction imposed by this paragraph on participation in a body corporate

which is the holder of a Channel 3 licence applies equally to participation in

a body corporate which controls the holder of such a licence.

          (5)      Any restriction on participation imposed by this paragraph—

              (a)             on the proprietor of a newspaper, or

5

              (b)             on the holder of a licence,

                            is to apply as if he and every person connected with him were one person.

          (6)      In this paragraph “a relevant national newspaper proprietor” means a

person who runs—

              (a)             a national newspaper which for the time being has a national market

10

share of 20 per cent. or more; or

              (b)             national newspapers which for the time being together have a

national market share of 20 per cent. or more.

National and local newspapers and their respective national and local market shares

  3       (1)      In this Part of this Schedule references to a national or local newspaper are

15

references to a national or local newspaper circulating wholly or mainly in

the United Kingdom or in a part of the United Kingdom.

          (2)      Where a newspaper is published in different regional editions on the same

day, OFCOM have the power to determine whether those regional editions

should be treated for the purposes of this Part of this Schedule as

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constituting—

              (a)             one national newspaper;

              (b)             two or more local newspapers; or

              (c)             one national newspaper and one or more local newspapers.

          (3)      In the case of a newspaper which would otherwise be neither a national nor

25

a local newspaper for the purposes of this Part of this Schedule, OFCOM

have the power to determine, if they consider it appropriate to do so in the

light of—

              (a)             its circulation and influence in the United Kingdom, or

              (b)             its circulation or influence in a part of the United Kingdom,

30

                   that the newspaper is to be treated as a national or as a local newspaper for

such of those purposes as they may determine.

          (4)      For the purposes of this Part of this Schedule, the national market share of a

national newspaper at any time is the percentage of the total number of

copies of all national newspapers sold in the United Kingdom in the relevant

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six months which is represented by the total number of copies of that

newspaper sold in the United Kingdom in that six months.

          (5)      For the purposes of this Part of this Schedule, the local market share of a local

newspaper in any area at any time is the percentage of the total number of

copies of all local newspapers sold in that area in the relevant six months

40

which is represented by the total number of copies of that newspaper sold in

that area in that six months.

          (6)      In sub-paragraphs (4) and (5) “the relevant six months” means the six

months ending with the last whole calendar month to end before the time in

question.

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Communications Bill
Schedule 14 — Media ownership rules
Part 2 — Radio multiplex services

    430

 

          (7)      For the purposes of sub-paragraphs (4) and (5), the number of copies of a

newspaper sold in the United Kingdom, or in a particular area, during any

period may be taken to be such number as is estimated by OFCOM—

              (a)             in such manner, or

              (b)             by reference to such statistics prepared by any other person,

5

                   as they think fit.

          (8)      In relation to a newspaper which is distributed free of charge (rather than

sold), references in this paragraph to the number of copies sold include

references to the number of copies distributed.

Construction of references to running a newspaper

10

  4        For the purposes of this Part of this Schedule a person runs a national or local

newspaper if—

              (a)             he is the proprietor of the newspaper; or

              (b)             he controls a body which is the proprietor of the newspaper.

Coverage area of a Channel 3 service

15

  5        For the purposes of this Part of this Schedule the coverage area for a Channel

3 service is the area that is determined by OFCOM to be the area of the

United Kingdom within which that service is capable of being received at a

level satisfying such technical standards as may have been laid down by

them for the purposes of this paragraph.

20

Power to amend Part 1 of Schedule

  6        The Secretary of State may by order repeal or otherwise modify any of the

restrictions imposed by this Part of this Schedule.

Part 2

Radio multiplex services

25

Restriction on holding of national radio multiplex licences

  7        A person is not to hold more than one national radio multiplex licence at the

same time.

Restriction on holding of local radio multiplex licences

  8       (1)      A person is not to hold any two local radio multiplex licences at the same

30

time where the coverage area of one of the licensed services overlaps with

the coverage area of the other in a way that means that the potential

audience for one of them is or includes at least half the potential audience of

the other.

          (2)      For the purposes of this paragraph the coverage area for a local radio

35

multiplex service is the area determined by OFCOM to be the area in the

United Kingdom within which that service is capable of being received at a

level satisfying such technical standards as may have been laid down by

them for the purposes of this sub-paragraph.

 

 

Communications Bill
Schedule 14 — Media ownership rules
Part 3 — Local sound programme services

    431

 

          (3)      Where a person is in contravention of this paragraph in respect of the

holding by him of local radio multiplex licences, that contravention is to be

disregarded in relation to any time if—

              (a)             he held those licences immediately before the commencement of this

paragraph;

5

              (b)             his holding of those licences immediately before the commencement

of this paragraph was not in contravention of paragraph 11(4) of Part

3 of Schedule 2 to the 1990 Act; and

              (c)             there has not been a relevant change of circumstances between the

commencement of this paragraph and that time.

10

          (4)      There is a relevant change of circumstances in the case of the person in

contravention if another person becomes the holder of the two pre-

commencement licences in relation to which the contravention arises.

          (5)      In sub-paragraph (4) “pre-commencement licence”, in relation to a person

and a time, means a local radio multiplex licence held by him immediately

15

before the commencement of this paragraph and still held by him at that

time.

Connected persons rules etc.

  9        For the purposes of this Part of this Schedule, where there is a licence to

provide a radio multiplex service, each of the following shall be treated as

20

holding that licence—

              (a)             the actual licence holder; and

              (b)             every person connected with the actual licence holder.

Power to amend Part 2 of Schedule

  10       The Secretary of State may by order repeal or otherwise modify any of the

25

restrictions imposed by this Part of this Schedule.

Part 3

Local sound programme services

Restriction on holding of local sound broadcasting licences

  11      (1)      The Secretary of State may by order impose—

30

              (a)             requirements prohibiting the holding at the same time by the same

person, in the circumstances described in the order, of more than the

number of local sound broadcasting licences that is determined in

the manner set out in the order;

              (b)             requirements prohibiting a person from holding even one local

35

sound broadcasting licence in the circumstances described in the

order.

          (2)      The circumstances by reference to which a person may be prohibited under

sub-paragraph (1) from holding a local sound broadcasting licence, and the

factors that may be used for determining the number of such licences that he

40

may hold, include, in particular—

              (a)             whether and to what extent the coverage areas of different services

provided by that person under different local sound broadcasting

licences would overlap;

 

 

Communications Bill
Schedule 14 — Media ownership rules
Part 3 — Local sound programme services

    432

 

              (b)             the sizes of the potential audiences for those services and the times

when those services would be made available;

              (c)             whether and to what extent members of the potential audiences for

those services would also be members of the potential audiences for

services provided under local sound broadcasting licences held by

5

other persons;

              (d)             in a case in which members of potential audiences for services so

provided by that person would also be members of the potential

audiences for services so provided by other persons—

                    (i)                   the number of those other persons;

10

                    (ii)                  the coverage areas of their services;

                    (iii)                 the sizes of the potential audiences for their services; and

                    (iv)                  the times when their services are or will be made available;

              (e)             whether that person runs one or more national newspapers, and

their national market share;

15

              (f)             whether and to what extent the whole or a part of the coverage area

for a service for which that person would hold a local sound

broadcasting licence is or includes an area in which one or more local

newspapers run by him is circulating, and the newspapers’ local

market share;

20

              (g)             whether and to what extent the whole or a part the coverage area for

which that person would hold a local sound broadcasting licence is

or is included in the coverage area of a regional Channel 3 service for

which he also holds a licence.

          (3)      For the purposes of this paragraph the coverage area for a service provided

25

under a local sound broadcasting licence or a Channel 3 licence is the area in

the United Kingdom within which that service is capable of being received

at a level satisfying such technical standards as may have been laid down by

OFCOM for the purposes of the provisions of an order under this paragraph.

Restriction applying to local digital sound programme services

30

  12      (1)      The Secretary of State may by order impose requirements, on persons

holding local digital sound programme licences, prohibiting the provision

by the same person, in the circumstances described in the order, of more

than the number of local digital sound programme services that is

determined in the manner set out in the order.

35

          (2)      The circumstances by reference to which a person may be prohibited under

sub-paragraph (1) from providing a local digital sound programme service,

and the factors that may be used for determining the number of such

services that he may provide, include, in particular—

              (a)             whether and to what extent the coverage areas of different local

40

digital sound programme services provided by that person would

overlap;

              (b)             the capacity used by those services on the relevant multiplexes;

              (c)             the sizes of the potential audiences for those services and the times

when those services would be made available;

45

              (d)             whether and to what extent members of the potential audiences for

those services would also be members of the potential audiences for

local digital sound programme services provided by other persons;

 

 

 
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