ComReg needs 'powers' to sanction telecom providers on behalf of consumer

The Oireachtas Committee on Transport and Communications said it is vital for ComReg to be given additional enforcement powers in order to address the concerns consumers have with service providers. Picture: Larry Cummins

The State’s communications regulator doesn’t have enough teeth to properly sanction telecom providers on behalf of the consumer, an Oireachtas committee has said.

Furthermore, Ireland could face “substantial fines and lump-sum penalties” if it continues to delay transposing an EU directive in this area into law. 

The Government was referred to the European Court of Justice over the directive earlier this year.

In its report examining the general scheme of the Communications Regulation (Enforcement) Bill, the Oireachtas Committee on Transport and Communications said it is vital for ComReg to be given additional enforcement powers in order to address the concerns consumers have with service providers.

“It is vital that ComReg, as the regulator for the telecommunications sector, be given effective and legally robust enforcement powers to ensure fair competition and a high level of service provision in the sector,” it said.

When the European Electronic Communications Code (EECC) came into force as an EU directive in 2018, member states were given two years to transpose it into national legislation but that has not happened in Ireland.

Legislation proposed

The Government has proposed legislation to establish a civil enforcement regime in the telecoms sector and make changes to the criminal enforcement regime.

ComReg would receive new investigation and adjudication powers under the regime, empowering it to make declarations of non-compliance and the ability to impose financial sanctions of up to €5m, or 10% of a company’s annual turnover.

The Government said these powers to dish out financial sanctions will “ensure effective, dissuasive, and efficient enforcement in the electronic communications sector”.

Further it would allow for customers to receive compensation up to €5,000 where a service provider has failed to comply with “minimum quality of service standards”.

The Oireachtas committee, in its report, stressed the new enforcement regime should be “workable” and shouldn’t create an administrative burden for ComReg or for consumers.

The final bill, however, has not yet been drafted and Ireland remains the subject of litigation at European level for so far failing to transpose the EECC into our legislation.

The committee said: “On April 11, the minister confirmed to the committee that Ireland had entered the litigation phase of the infringement process. The likely result of any continued delay to Ireland’s transposition of the code would be the imposition of substantial fines and lump-sum penalties.

“On May 26, officials from the department informed the committee that it has not yet received a date for the ECJ hearing, but is keeping the European Commission updated on the progress of the bill.”