Federal Court reject 2Day FM’s bid to stop ACMA royal prank investigation

More bad news for 2Day FM: this morning the Federal Court threw out a bid to stop broadcast watchdog Australian Communication Media Authority from investigating whether airing the royal prank call was a breach of licensing conditions.

In June, 2Day FM applied for a restraining order in a bid to stop the watchdog from investigating the legal aspects of the case, arguing the ACMA didn’t have the necessary authority to make a decision.

ACMA Chairman Chris Chapman was happy with today’s ruling: "It provides clarity over the operation of the licence condition that prohibits broadcasters from using their broadcasting service in the commission of an offence.

"The Federal Court confirmed that the ACMA has the power to form an opinion as to whether a broadcaster has breached the licence condition, independently of any conviction for a criminal offence."

SCA’s media statement simply stated: "We are reviewing the judgement and considering our position. There will be no further comment at this time."

The finding that could undo 2Day FM involves a possible breach of the Surveillance Devices Act, which bans the use of a broadcasting service to commit an offence. If found guilty of this, the station could have its licence cancelled - obviously an extreme outcome, but very much a possibility. A three month suspension is also possible, which would obviously be a huge financial blow for SCA.