• Australian Communications and Media Authority

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Report cover: Optimal conditions for effective self- and co-regulatory arrangements

28 September 2011The Australian Communications and Media Authority (the ACMA) is examining the circumstances that are likely to lead to effective and efficient regulation, which includes consideration of self- and co-regulatory arrangements. The ACMA administers co-regulatory arrangements and promotes industry self-regulation in a number of areas of the broadcasting, telecommunications, internet and radiocommunications sectors. Industry codes are a key self-regulatory or co-regulatory mechanism in the Australian communications and media sectors.

This paper is a revised edition of the ACMA’s occasional paper Optimal conditions for effective self- and co-regulatory arrangements. It identifies a number of general factors or conditions common to the effective and efficient operation of self- and co-regulatory arrangements, setting out an assessment framework for analysing these proposed arrangements. It also seeks to identify the conditions where alternative regulatory mechanisms should be considered to address a particular market failure or policy issue. This edition includes updated material, and case studies demonstrating the application of the ACMA’s assessment framework in an environment of continuing change and convergence.

The self- and co-regulatory framework for media and communications generally requires industry participants to assume responsibility for regulatory detail within their own sectors. This is underpinned by clear legislative obligations, with the regulator maintaining reserve powers. These arrangements provide flexibility for the ACMA, as the regulator, to exercise a variety of roles depending on the nature of the concern, such as whether the issue is a policy matter or market issue. This includes the flexibility to not intervene and allow market-based solutions to develop, to provide advice to government on policy issues, or to encourage industry-developed solutions.

Current policy and regulatory review activities are considering the appropriate mechanisms for addressing new and emerging issues. Such mechanisms may be regulatory or non-regulatory. Some of the emerging challenges include changing industry structures and supply chains, rapidly changing technologies and service innovation, and developing areas of consumer concern. Such an environment inevitably puts pressure on the ability of sector-based regulation to deliver on policy objectives of enduring importance. Against this backdrop, the ACMA is continuing its work to examine the conditions for effective self- and co-regulation in the media and communications sectors, and to identify the lessons learnt from its experience in administering co-regulatory arrangements in the telecommunications, broadcasting and internet sectors.