Communications Act 2003, section 237

Penalties for contravention of licence condition or direction

Part 3 Television and Radio Services ETC

(1)If OFCOM are satisfied that the holder of a licence to provide a television licensable content service—

(a)has contravened a condition of the licence, or

(b)has failed to comply with a direction given by OFCOM under or by virtue of a provision of this Part, Part 1 of the 1990 Act or Part 5 of the 1996 Act,

they may serve on him a notice requiring him to pay them, within a specified period, a specified penalty.

(2)The amount of the penalty under this section must not exceed the maximum penalty given by subsection (3).

(3)The maximum penalty is whichever is the greater of—

(a)£250,000; and

(b) 5 per cent. of the qualifying revenue for the licence holder’s last complete accounting period falling within the period for which his licence has been in force (“the relevant period”).

(4)In relation to a person whose first complete accounting period falling within the relevant period has not ended when the penalty is imposed, subsection (3) is to be construed as referring to 5 per cent of the amount which OFCOM estimate will be the qualifying revenue for that accounting period.

(5)Section 19(2) to (6) of the 1990 Act and Part 1 of Schedule 7 to that Act (calculation of qualifying revenue), with any necessary modifications, are to apply for the purposes of subsection (3) as they apply for the purposes of Part 1 of that Act.

(6)OFCOM are not to serve a notice on a person under subsection (1) unless they have given him a reasonable opportunity of making representations to them about the matters appearing to them to provide grounds for the service of the notice.

(7)Where OFCOM—

(a)serve a notice on a BBC company under subsection (1), or

(b)receive representations from a BBC company by virtue of subsection (6),

they must send a copy of the notice or representations to the Secretary of State.

(8)An exercise by OFCOM of their powers under subsection (1) does not preclude any exercise by them of their powers under section 236 in respect of the same contravention.

(9)The Secretary of State may by order substitute a different sum for the sum for the time being specified in subsection (3)(a).

(10)No order is to be made containing provision authorised by subsection (9) unless a draft of the order has been laid before Parliament and approved by a resolution of each House.

Definitions used in section 237 11

OFCOM

“OFCOM” means the Office of Communications;

Defined in s.405(1) · see it in the full Act
holder

“holder”, in relation to a Broadcasting Act licence, is to be construed in accordance with subsection (7), and cognate expressions are to be construed accordingly;

Defined in s.405(1) · see it in the full Act
provide

(7) In relation to a qualifying audiovisual service that is an on-demand programme service, references in this Part to “provide” (and related expressions) are to be read in accordance with section 368R(5).

Defined in s.278B(7) · see it in the full Act

“provide” and cognate expressions, in relation to an electronic communications network, electronic communications service or associated facilities, are to be construed in accordance with section 32(4);

Defined in s.405(1) · see it in the full Act
television licensable content service

(1) In this Part “television licensable content service” means (subject to section 233) any service , or dissociable section of a service, falling within subsection (2) in so far as it is provided with a view to its availability for reception by members of the public being secured by one or more of the following means—

(a)the broadcasting of the service or dissociable section of the service (whether by the person providing it or by another) from a satellite; ...

(aa)the broadcasting of the service or dissociable section of the service (whether by that person or by another) by means of a radio multiplex service; or

(b)the distribution of the service or dissociable section of the service (whether by that person or by another) by any means involving the use of an electronic communications network.

Defined in s.232(1) · see it in the full Act

“television licensable content service” has the meaning given by section 232 of this Act ;

Defined in s.362(1) · see it in the full Act
provision

“provision”, in relation to a service, is to be construed (subject to subsection (3)) in accordance with subsection (2), and cognate expressions are to be construed accordingly;

Defined in s.362(1) · see it in the full Act
the 1990 Act

“the 1990 Act” means the Broadcasting Act 1990 (c. 42);

Defined in s.405(1) · see it in the full Act
the 1996 Act

“the 1996 Act” means the Broadcasting Act 1996 (c. 55);

Defined in s.405(1) · see it in the full Act
modification

“modification” includes omissions, alterations and additions, and cognate expressions are to be construed accordingly;

Defined in s.405(1) · see it in the full Act
representation

“representation”, in relation to a proposal or the contents of any notice or notification, includes an objection to the proposal or (as the case may be) to the whole or any part of those contents;

Defined in s.405(1) · see it in the full Act
BBC company

“BBC company” means—

(a)

a body corporate which is controlled by the BBC; or

(b)

a body corporate in which the BBC or a body corporate controlled by the BBC is (to any extent) a participant;

Defined in s.362(1) · see it in the full Act
contravention

“contravention” includes a failure to comply, and cognate expressions are to be construed accordingly;

Defined in s.405(1) · see it in the full Act

Cases considering section 237 5

Office of Communications v Star China Media Limited

[2025] EWHC 2816 (KB) · 30 October 2025Limits

Applies the penalty power to contraventions of licence conditions and relevant directions. The provision draws no distinction between standards-code and fairness-code contraventions (see paras [20]-[21], [101]). Confirms that penalties under s. 237 are subject to a statutory maximum (see para [20]). Identifies the maximum penalty as the greater of £250,000 and 5 per cent of qualifying revenue; the statutory maximum formed part of the rejected aggregation argument (see paras [20], [85], [116]). Confirms the procedural safeguard requiring a reasonable opportunity to make representations before a penalty notice is served (see para [20]).

Star China Media Limited, R (on the application of) v The Office of Communications

[2022] EWHC 3136 (Admin) · 8 December 2022Defines

Confirms OFCOM’s power to impose a financial penalty where a licence-holder has contravened a licence condition. The amount is for OFCOM subject to the statutory maximum (see para [2]). Defines the maximum financial penalty as the greater of £250,000 or 5% of the licence-holder’s qualifying revenue (see para [7]).

DM Digital Television Ltd, R (On the Application Of) v The Office of Communications (Ofcom)

[2014] EWHC 961 (Admin) · 3 March 2014Limits

Section 237(1) is identified as empowering Ofcom to impose a specified financial penalty where it is satisfied that a television licence holder has contravened a licence condition. The admitted Broadcasting Code breaches therefore engaged Ofcom’s statutory penalty power. (see paras [5]-[7]) Section 237(2) is identified as limiting the penalty to the statutory maximum. The court considered the penalties within the statutory framework and found no irrationality or disproportionality arising from their size. (see paras [6], [54]-[60]) Section 237(3) identifies the maximum penalty by reference to £250,000 or five per cent of qualifying revenue, whichever is greater. The judgment records this statutory ceiling as part of the context for assessing the penalties. (see para [6]) Section 237(6) requires Ofcom to give a licence holder a reasonable opportunity to make representations before imposing a penalty. The court described the representation stages in Ofcom’s process and found them fair and transparent. (see paras [7], [15]-[18], [56])

What each judgment says about section 237 is in the case-law panel in the full Act.

Explanatory note

533.If OFCOM are satisfied that a television licensable content service licence holder has breached a condition of that licence, or has not complied with a direction given by OFCOM, they may serve a notice on that person imposing a fine. The maximum fine is the greater of £250,000 or 5 per cent of qualifying revenue within the relevant period. OFCOM may not impose a fine unless they have first given the licence holder the chance to comment. If OFCOM serve a notice on a BBC company, they must send a copy of that notice, and of any representations received from the company, to the Secretary of State. The Secretary of State may vary the amount of the maximum fine by order.

  • *“qualifying revenue” is calculated in accordance with section 19(2) to (6) of the Broadcasting Act 1990 and Part 1 of Schedule 7 to that Act, with any necessary modifications.

All the explanatory notes for the Act

Amendments and notes

2 notes from legislation.gov.uk

Modifications

  1. C51S. 237 restricted (8.12.2003) by The Office of Communications Act 2002 (Commencement No. 3) and Communications Act 2003 (Commencement No. 2) Order 2003 (S.I. 2003/3142), art. 9 (with art. 11)

Commencement

  1. I375S. 237 in force at 29.12.2003 by S.I. 2003/3142, art. 3(1), Sch. 1 (with art. 11)