TPG Telecom fined $75,000 for alleged breach of carrier separation rules

TPG Telecom (ASX:TPG) has paid $75,120 in penalties after the Australian Competition and Consumer Commission issued four infringement notices for alleged non-compliance with its Functional Separation Undertaking under the Telecommunications Act.

The ACCC alleges that between August 31, 2023, and May 22, 2024, a senior TPG wholesale staff member worked unaccompanied in offices shared with retail staff, violating separation requirements.

The rules are designed to prevent the exchange of sensitive information that could give TPG's retail operations an unfair advantage over third-party providers on its Vision Network.

While no evidence of information sharing was found, the ACCC stated that the breach had the potential to impact competition in the retail broadband market.

"This is our first enforcement action for an alleged contravention of the carrier separation rules as we continue to focus on promoting competition in essential services, such as telecommunications," ACCC Commissioner Liza Carver said.

The ACCC accepted TPG's joint functional separation undertaking in April 2022, requiring its wholesale and retail divisions to operate independently unless an exemption applies.

At the time of reporting, TPG Telecom's share price was $4.88.