TPG Telecom Limited has paid $75,120 in penalties after the ACCC issued it with four infringement notices for alleged contraventions of the Telecommunications Act by failing to comply with its joint functional separation undertaking.
TPG's undertaking includes obligations designed to ensure separation of wholesale and retail functions as required by the carrier separation rules in the Telecommunications Act.
The ACCC alleges that, from 31 August 2023 to 22 May 2024, TPG failed to have measures in place to prevent staff of its wholesale and retail businesses from accessing the other's premises unless accompanied to the extent practicable while on the premises, as required in the undertaking.
It is alleged that on four occasions a senior TPG wholesale staff member worked unaccompanied in offices where TPG retail staff were located without any physical or other security barriers separating the respective staff.
The staff separation obligations are intended to prevent staff from the two businesses sharing sensitive information that could favour TPG's own retail operations over third-party retailers on its Vision Network.
Although there was no evidence that sensitive information was shared, the alleged conduct had the potential to affect competition in relation to the supply of retail broadband services to a significant number of consumers.
"This is our first enforcement action for an alleged contravention of the carrier separation rules as we continue to focus on promoting competition in essential services, such as telecommunications," ACCC Commissioner Liza Carver said.
"Carriers must comply with the carrier separation rules which are designed to promote retail competition and choice for consumers on alternative fixed-line broadband networks."
"The new telecommunications infringement notice powers allow us to respond quickly to instances of non-compliance. However, where warranted, we will not hesitate to pursue matters in the Federal Court and seek significant penalties, of up to $10 million per contravention," Ms Carver said.
Background
On 7 April 2022, the ACCC accepted a joint functional separation undertaking given by TPG on behalf of the TPG Retailers and TPG Wholesalers under Part 8 of the Telecommunications Act.
The undertaking was given under the carrier separation rules in the Telecommunications Act, which require superfast network operators to operate on a wholesale-only basis, unless they seek an exemption from the ACCC. This means that a company that controls a superfast broadband network cannot supply retail services over it unless there is a class exemption or a functional separation undertaking in place.
On 4 September 2024, the ACCC issued the ACCC Telecommunications (Infringement Notices) Guidelines 2024 informing telecommunications operators of the ACCC's approach to exercising its infringement notice powers for failure to comply with the carrier separation rules under Part 8 of the Telecommunications Act.
The ACCC has also published industry guidance on the carrier separation rules that provides an overview of the obligations which apply to network operators and intermediaries supplying retail services, including apartment building owners, property managers and retirement village operators.
Details of the infringement notices given to TPG are available on the Telecommunications infringement notices register.
Note
The payment of a penalty specified in an infringement notice is not an admission of a contravention of the Telecommunications Act 1997.
The ACCC Chair, as an authorised infringement notice officer, can give an infringement notice when they have reasonable grounds to believe a person or business has contravened certain civil provisions of the Telecommunications Act 1997.
