Melita plc has been ordered to pay two separate fines of €5,000 each by the Malta Communications Authority for breaching regulations over its billing system and the removal of Italian football club channels.
In its first decision dated Tuesday, the regulator found Melita had failed to provide it with a “letter of comfort” from an independent auditor stating its billing system was operating satisfactorily and meeting accepted standards over accuracy of consumer bills.
The MCA dismissed Melita’s argument that its request was disproportionate as the regulator had a clear legal remit and responsibility to ensure consumer rights were adequately protected. It was also entrusted to ensure “a high level of protection for consumers in their dealings with suppliers”. It added it would be failing in its duties if it ignored complaints by various consumers about Melita’s billing and did not intervene.
Melita argued the required letter of comfort could not be construed as information which the MCA was entitled to request according to law. But the MCA insisted it was legally able to request any information it may consider necessary to ensure compliance with decisions, directives or with any provisions of any law that it is empowered to enforce.
The law expressly stated that one of the regulator’s core functional objectives was the promotion of “the provision of clear information, in particular requiring transparency of tariffs and conditions for using publicly available electronic communications services.”
In the circumstances, the MCA considered the continued complaints by Melita’s customers about its billing justified the regulator’s request for information in terms of law.
Melita was fined a one-off administrative penalty of €5,000 and a daily administrative fine of €100 from Tuesday. The daily fine will remain in place until Melita provided the letter of comfort.
In the second decision also on Tuesday, the MCA found Melita breached regulations after it failed to inform subscribers in writing of the change in the channel line-up and of discontinuation of programming. The company also failed to inform customers of their right to opt out of their subscription contract within a minimum 30 days.
Melita discontinued the Roma, Inter, Juventus and Milan channels on June 30 and admitted it did not inform impacted subscribers. It said it had tried to negotiate channel rights for a further term but was told that the rights had been awarded to another provider.
Melita’s reply to the MCA’s warning letter on July 30 was that it had no obligation to comply with the requirements of the November 2008 decision as there was no modification of any contractual terms entered into with the impacted subscribers.
The regulator disagreed, saying Melita was substantially and materially modifying the content of the XL TV package previously provided to subscribers. There was nothing to prevent Melita from advising subscribers and the MCA in good time before June 30 that it was entitled to carry the channels only up to that date and that it had no rights to broadcast them afterwards.
The MCA added that contrary to Melita’s argument, the mere numerical substitution of four specific channels with particular content with another new four channels did not rectify matters. The Authority also questioned the validity of clause 4.1 in Melita’s terms and conditions that empowered it to change “at its absolute discretion” any channel allocations and channels.
Melita was fined €5,000.