Wednesday, 26 March 2025 14:47

TPG penalised for non-compliance with functional separation undertaking Featured

By Josh Martinez
TPG penalised for non-compliance with functional separation undertaking Image by succo from Pixabay

Australian telecoms operator TPG Telecom Limited has paid A$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.

As a core obligation of its undertaking, TPG is required to ensure separation of wholesale and retail functions as required by the carrier separation rules in the Telecommunications Act.

However the ACCC alleges that, from 31 August 2023 to 22 May 2024, TPG failed to have measures in place to prevent unaccompanied staff of its wholesale and retail businesses from accessing the other’s premises, as required in the undertaking.

The ACCC has 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.

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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.

The ACCC says there was no evidence that sensitive information was shared but the alleged conduct had the potential to affect competition.

“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.”

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