Section 18 Failure to begin providing licensed service and financial penalties on revocation of licence.C2C3C4
United Kingdom
If at any time after a Channel 3 licence has been granted to any person but before the licence has come into force—
that person indicates to F1OFCOM that he does not intend to provide the service in question, or
OFCOM for any other reason have reasonable grounds for believing that that person will not provide that service once the licence has come into force,
then, subject to subsection (2)—
OFCOM shall serve on him a notice revoking the licence as from the time the notice is served on him, and
section 17 shall (subject to section 17(14)) have effect as if he had not made an application for the licence.
Subsection (1) shall not apply in the case of any person by virtue of paragraph (b) of that subsection unless OFCOM have served on him a notice stating their grounds for believing that he will not provide the service in question once his licence has come into force; and they shall not serve such a notice on him unless they have given him a reasonable opportunity of making representations to them about the matters complained of.
Where OFCOM revoke a Channel 3 licence under this section or under any other provision of this Part, they shall serve on the licence holder a notice requiring him to pay to them, within a specified period, F2a specified financial penalty.
F3The maximum amount which a person may be required to pay by way of a penalty under subsection (3) is the maximum penalty given by subsections (3B) and (3C).
In a case where the licence is revoked under this section or the penalty is imposed before the end of the first complete accounting period of the licence holder to fall within the period for which the licence is in force, the maximum penalty is whichever is the greater of—
£500,000; and
7 per cent. of the amount which OFCOM estimate would have been the qualifying revenue for the first complete accounting period of the licence holder falling within the period for which the licence would have been in force.
In any other case, the maximum penalty is whichever is the greater of—
£500,000; and
7 per cent. of the qualifying revenue for the last complete accounting period of the licence holder falling within the period for which the licence is in force.
F4Section 18A applies for estimating or determining qualifying revenue for the purposes of subsection (3B) or (3C) above.
Any financial penalty payable by any body by virtue of subsection (3) shall, in addition to being recoverable from that body as provided by section 68(5), be recoverable by OFCOM as a debt due to them from any person who controls that body.
Annotations
Textual amendments
- F1
Words in ss. 17A-19 substituted (29.12.2003) by Communications Act 2003 (c. 21), s. 411(2), Sch. 15 para. 10 (with Sch. 18); S.I. 2003/3142, art. 3(1), Sch. 1 (with art. 11)
- F2
Words in s. 18(3) substituted (29.12.2003) by Communications Act 2003 (c. 21), s. 411(2), Sch. 13 para. 2(1) (with Sch. 18); S.I. 2003/3142, art. 3(1), Sch. 1 (with art. 11)
- F3
S. 18(3A)-(3D) substituted for 18(4) (29.12.2003) by Communications Act 2003 (c. 21), s. 411(2), Sch. 13 para. 2(2)(3) (with Sch. 18); S.I. 2003/3142, art. 3(1), Sch. 1 (with art. 11)
- F4
Words in s. 18(3D) substituted (17.10.2024 for specified purposes, 1.1.2026 in so far as not already in force) by Media Act 2024 (c. 15), ss. 19(2), 55(3)(a); S.I. 2024/1033, reg. 2; S.I. 2025/1049, reg. 3(q)
Modifications
- C1
S. 18(3) modified (1.11.1996) by 1996 c. 55, s. 145(6)(a); S.I. 1996/2120, art. 4, Sch. 1; S.I. 1996/2120, art. 5, Sch. 2
- C2
S. 18(3B)(a): power to amend conferred (29.12.2003) by Communications Act 2003 (c. 21), s. 411(2), Sch. 13 para. 9 (with Sch. 18); S.I. 2003/3142, art. 3(1), Sch. 1 (with art. 11)
- C3
S. 18(3C)(a): power to amend conferred (29.12.2003) by Communications Act 2003 (c. 21), s. 411(2), Sch. 13 para. 9 (with Sch. 18); S.I. 2003/3142, art. 3(1), Sch. 1 (with art. 11)
- C4
Pt. 1: transfer of functions (29.12.2003) by Communications Act 2003 (c. 21), s. 411(2), Sch. 1 para. 3(a) (with Sch. 18); S.I. 2003/3142, art. 3(1), Sch. 1 (with art. 11)