Regulation 10 Maximum amount of penalty: two or more entities in group jointly and severally liable

(1)

This regulation applies for the purposes of paragraph 5 of Schedule 13 to the Act (maximum amount of penalties: group of entities) regarding the qualifying worldwide revenue of a group of entities that consists of—

(a)

an entity that is the provider of a regulated service (entity “E”); and

(b)

every other entity that is a group undertaking in relation to entity E.

(2)

The qualifying worldwide revenue of the group of entities is determined by—

(a)

finding, in respect of each entity within paragraph (1)(a) and (b), the total amount of relevant revenue; and

(b)

adding together those amounts.

(3)

For the purposes of paragraph (2)(a) an amount of revenue is “relevant” if—

(a)

the entity receives it during the most recent complete accounting period (whether or not it is referable to a regulated service); and

(b)

it is not attributable to payment in consideration for goods or services provided to another entity within paragraph (1)(a) or (b).

(4)

For the purposes of paragraph (2)(a), where the first accounting period of an entity within paragraph (1)(a) or (b) has not yet ended, the amount of relevant revenue in respect of that entity includes, in addition to the amount calculated in accordance with paragraph (3), the amount of revenue which OFCOM estimates—

(a)

that the entity is likely to receive during the remainder of that accounting period (whether or not it is referable to a regulated service); and

(b)

will not be attributable to payment in consideration for goods or services provided to another entity within paragraph (1)(a) or (b).

(5)

Where an entity is a group undertaking in relation to entity E for part (not all) of the most recent complete accounting period, only amounts relating to the part of the accounting period for which the entity was a group undertaking may be brought into account in determining the total amount of relevant revenue.