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This follows concerning revelations about its close collaboration with major telcos. Through Freedom of Information disclosures, the ABC has found that the ACMA ‘cut a deal’ with Optus to reduce its fine for breaching the Integrated Public Number Database (IPND) in late 2023, and has an established practice of sharing media releases about upcoming enforcement actions with the affected companies to check they are ‘suitable’. ACCAN CEO Carol Bennett said that these practices raise deeply concerning questions about ACMA’s independence and its ability to act in the public interest.
“Independent research has found the ACMA levied just over $6 million in fines to telcos – some of Australia’s largest companies – for consumer protections breaches between 2010 and 2023, despite the consumer experience of poor services, high prices and exploitative sales conduct.”
“Today’s reports give us significant concerns that the regulated and the regulator have too close a relationship. When this is the case, consumers pay the price.”
“The key regulator for our sector must oversee clear rules to protect consumers, and step in to penalise non-compliance when it occurs. The correspondence found between Optus and the ACMA raises serious questions about the close dealings of the two parties in jointly determining fines and penalties.”
Read also: Clearer focus on public safety and community protections in communications
The close relationship between the ACMA and major telecommunications companies has raised alarm bells, with concerns now mounting about the potential for regulatory capture. With the public already grappling with rising telecom costs and poor service experiences, the idea that the industry regulator might be too lenient or too closely aligned with the companies it oversees is troubling.
Such practices may not only undermine the regulator’s credibility but also hinder effective consumer protection, leaving Australians vulnerable to exploitation.
“We welcome the government’s recent announcement that the ACMA will have strengthened enforcement powers. However, today’s revelation goes to the culture and approach of the organisation, about which questions have been raised.”
“No other sector accepts collusion on fines and penalties between a watchdog and the industry it oversees—a situation that can only be described as regulatory capture.”
“Fining an $8 billion company only $1.5 million for over 200,000 data breaches suggests telcos can treat compliance obligations as inconsequential or just the cost of doing business.”
“A parliamentary inquiry with broad terms of reference is the only way to address the issues raised by these documents and more broadly within the sector.”
A parliamentary inquiry suggested by ACCAN would allow for a comprehensive examination of these practices and provide an opportunity for the government to restore public confidence in the sector. By scrutinising the ACMA’s actions and decision-making processes, the inquiry could help to identify areas where reforms are needed to strengthen its independence. Furthermore, it could shed light on the broader issues within the telecommunications sector, paving the way for more robust consumer protections and ensuring that regulators fulfil their role without undue influence from the industry they monitor.
“As an essential consumer service, the public expects that their regulator for this industry is working in their interest – not as a lapdog for industry,” Bennett concluded.
Adrianne Saplagio is a Content Producer at Comms Room, where she combines her passion for storytelling with her expertise in multimedia content creation. With a keen eye for detail and a knack for engaging audiences, Adrianne has been instrumental in crafting compelling narratives that resonate across various digital platforms.
