Prohibited communication & associated applicants

Jane Cole Manager, Major Spectrum Allocations, ACMA

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Why we need prohibited communication rules

>Encourage an honest, competitive bidding environment

>Protect the integrity of the auction

>Complement the Competition and Consumer Act 2010

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Prohibited communicationDEFINITIONS

> Prohibited communication: communication of confidential information that could influence the outcome of the auction

> Confidential information: non-public information about an applicant’s bids or bidding strategies or information that could affect the auction outcome when disclosed

> Applicant group includes all members who have, or are reasonably likely to have, access to confidential information of the applicant

> Permitted disclosure: disclosure made directly to the ACMA, another member of the applicant group or an applicant’s financiers/advisers

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Prohibited communication rules

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Rules at application

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Rules after application

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>Exclusion from auction

>Forfeiture of deposits

>Ineligible to participate in future ACMA spectrum auctions for two years

>All breaches referred to the ACCC

Consequences forbreaching rules

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Associated applicants

>Associated applicants

- applicants that are connected in a material way

>For example:- common directors- significant shareholdings

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Reasons for dealing with associates

>Rules to support any Ministerial direction on competition limits

>Measure to protect against collusion

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Rules - pre auction

•Applicants required to advise ACMA of associations on application

•Following closure of applications ACMA to provide applicants with details of other applicants and their associates

•Applicants to provide statutory declaration (if no associations) or notify ACMA (if associations exist)

•ACMA considers whether an association exists and if so, designates the relevant parties as associated applicants

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Options for resolving associations

•Withdraw all applications from the auction process

•Withdraw all applications and resubmit a single application

•Withdraw all bar one of the relevant applications

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Rules - during auction

•New associations to be reported to ACMA

•Failure to report: exclusion from auction and forfeiture of deposits/ bank guarantees

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