Communications Act 2003, section 7

Duty to carry out impact assessments

Part 1 Functions of OFCOM

(1)This section applies where—

(a)OFCOM are proposing to do anything for the purposes of, or in connection with, the carrying out of their functions; and

(b)it appears to them that the proposal is important;

but this section does not apply if it appears to OFCOM that the urgency of the matter makes it impracticable or inappropriate for them to comply with the requirements of this section.

(2)[F53 Subject to subsection (2A),F53] a proposal is important for the purposes of this section only if its implementation would be likely to do one or more of the following—

(a)to involve a major change in the activities carried on by OFCOM;

(b)to have a significant impact on persons carrying on businesses in the markets for any of the services, facilities, apparatus or directories in relation to which OFCOM have functions; or

(c)to have a significant impact on the general public in the United Kingdom or in a part of the United Kingdom.

[F54 (2A)A proposal to do any of the following is important for the purposes of this section—

(a)to prepare a code of practice under section 41 of the Online Safety Act 2023;

(b)to prepare amendments of such a code of practice; or

(c)to prepare a code of practice as a replacement for such a code of practice.F54]

(3)Before implementing their proposal, OFCOM must either—

(a)carry out and publish an assessment of the likely impact of implementing the proposal; or

(b)publish a statement setting out their reasons for thinking that it is unnecessary for them to carry out an assessment.

(4)An assessment under subsection (3)(a) must set out how, in OFCOM’s opinion, the performance of their general duties (within the meaning of section 3) is secured or furthered by or in relation to what they propose.

[F55 (4A)An assessment under subsection (3)(a) that relates to a proposal mentioned in subsection (2A) must include an assessment of the likely impact of implementing the proposal on small businesses and micro businesses.

(4B)An assessment under subsection (3)(a) that relates to a proposal to do anything else for the purposes of, or in connection with, the carrying out of OFCOM’s online safety functions (within the meaning of section 235 of the Online Safety Act 2023) must, so far as the proposal relates to such functions, include an assessment of the likely impact of implementing the proposal on small businesses and micro businesses.F55]

(5)An assessment carried out under this section—

(a)may take such form, and

(b)must relate to such matters,

as OFCOM consider appropriate.

(6)In determining the matters to which an assessment under this section should relate, OFCOM must have regard to such general guidance relating to the carrying out of impact assessments as they consider appropriate.

(7)Where OFCOM publish an assessment under this section—

(a)they must provide an opportunity of making representations to them about their proposal to members of the public and other persons who, in OFCOM’s opinion, are likely to be affected to a significant extent by its implementation;

(b)the published assessment must be accompanied by a statement setting out how representations may be made; and

(c)OFCOM are not to implement their proposal unless the period for making representations about it has expired and they have considered all the representations that were made in that period.

(8)Where OFCOM are required (apart from this section)—

(a)to consult about a proposal to which this section applies, or

(b)to give a person an opportunity of making representations about it,

the requirements of this section are in addition to, but may be performed contemporaneously with, the other requirements.

(9)Every report under paragraph 12 of the Schedule to the Office of Communications Act 2002 (c. 11) (OFCOM’s annual report) must set out—

(a)a list of the assessments under this section carried out during the financial year to which the report relates; and

(b)a summary of the decisions taken during that year in relation to proposals to which assessments carried out in that year or previous financial years relate.

(10)The publication of anything under this section must be in such manner as OFCOM consider appropriate for bringing it to the attention of the persons who, in OFCOM’s opinion, are likely to be affected if their proposal is implemented.

Definitions used in section 7 5

OFCOM

“OFCOM” means the Office of Communications;

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

“business” includes any trade or profession;

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

“apparatus” includes any equipment, machinery or device and any wire or cable and the casing or coating for any wire or cable;

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

“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
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

Cases considering section 7 3

THE KING (on the application of (1) Meta Platforms Inc. and (2) WhatsApp LLC) v THE OFFICE OF COMMUNICATIONS

[2026] EWHC 2779 (Admin) · 30 October 2026Interprets

The impact-assessment duty arises where OFCOM proposes action for carrying out its functions and the proposal appears important to OFCOM. (see paras [79], [95]) A proposal is important only if its implementation is likely to have one of the statutory impacts. The court reviewed OFCOM’s assessment for rationality. (see paras [80], [95]-[97]) The court considered the alleged significant impact on regulated businesses but held that it was rational for OFCOM to treat these notices as individual decisions rather than an important proposal. (see paras [87], [95]-[97]) Before implementing an important proposal, OFCOM must publish an impact assessment or reasons for considering one unnecessary. The court found no irrational failure to treat the notices as such a proposal. (see paras [81], [95]-[97]) The provision requires an opportunity for representations when an impact assessment is published. The court noted that the claimants had individually been able to make representations to OFCOM. (see paras [82], [98]) The provision distinguishes impact-assessment requirements from other consultation or representation duties, while allowing them to be performed together. The court used it to distinguish public consultation from an individual opportunity to make representations. (see paras [83], [98])

EE Ltd v Office of Communications (Rev 1)

[2016] EWHC 2134 (Admin) · 26 August 2016Limits

Ofcom was not required to undertake the proposed impact assessment because it had no discretion whether to set fees at full market value under the direction. (see paras [61]; [93]) Ofcom’s August 2014 consultation and 2015 statement adequately explained why no impact assessment was issued. (see para [93])

Hutchison 3G UK Ltd v Office Of Communications (Ofcom)

[2017] EWHC 3376 (Admin) · 20 December 2017

The provision was relied on as requiring an impact assessment for important proposals. The court considered the consultation challenge without treating the alleged failure to conduct an impact assessment as determinative. (see paras [211], [218]-[240])

What each judgment says about section 7 is in the case-law panel in the full Act.

Explanatory note

39.Unless the urgency of a matter makes it impracticable or inappropriate, before implementing an important proposal in connection with the performance of their functions, OFCOM must either carry out and publish their assessment of the likely impact of the proposals or publish a statement setting out their reasons for thinking that it is unnecessary for them to carry out such an assessment. A proposal is an important proposal if it would be likely to involve a major change of their activities or have a significant impact on communications businesses or the general public. OFCOM will decide the form and content of the assessment, having regard to relevant general guidance, but subsection (4) requires that the assessment must set out how the proposal would secure or further the performance of OFCOM’s general duties, or how the performance of the duties would be secured or furthered in relation to the proposals. When OFCOM publish an assessment, they must provide persons who are likely to be affected by the proposal with an opportunity to comment on it. OFCOM’s annual report must set out the assessments that have been carried out under this section and summarise the decisions taken by OFCOM in relation to proposals in respect of which impact assessments have been carried out.

All the explanatory notes for the Act

Amendments and notes

4 notes from legislation.gov.uk

Amendments

  1. F53Words in s. 7(2) inserted (26.10.2023) by Online Safety Act 2023 (c. 50), ss. 93(2), 240(4)
  2. F54S. 7(2A) inserted (26.10.2023) by Online Safety Act 2023 (c. 50), ss. 93(3), 240(4)
  3. F55S. 7(4A)(4B) inserted (26.10.2023) by Online Safety Act 2023 (c. 50), ss. 93(4), 240(4)

Commencement

  1. I15S. 7 in force at 29.12.2003 by S.I. 2003/3142, art. 3(1), Sch. 1 (with art. 11)