AAP
Southern Cross Austereo faces losing its 2DayFM Sydney radio licence if a formal investigation by the broadcasting regulator into a fateful prank call goes against it.
The Australian Communications and Media Authority (ACMA) announced on Thursday it would use its discretionary powers to begin an "own motion" investigation of the call, bypassing the usual complaints procedures.
The licensee, Today FM Sydney Pty Ltd, will be examined on whether it complied with its broadcasting obligations when it aired the call to a London hospital where the Duchess of Cambridge was receiving treatment for acute morning sickness.
"The ACMA's formal regulatory relationship is always with the relevant licensee and not the presenters of any broadcast in question," ACMA chairman Chris Chapman said in a statement.
The call, made by 2DayFM announcers Michael Christian and Mel Greig, who impersonated the Queen and Prince Charles, has been linked to death of Jacintha Saldanha, a nurse at the King Edward VII hospital.
Ms Saldanha transferred the call to another nurse who revealed details about the pregnant wife of Prince William to the pair.
The 46-year-old was found dead in an apparent suicide three days later on December 7.
Southern Cross, which says it "deeply regrets" what happened, has said the station tried at least five times to contact the hospital about the call before it was aired.
But the hospital challenges this and has condemned the prank, saying it resulted in the "humiliation of two dedicated and caring nurses".
ACMA's investigation will centre on the station's obligations under the Commercial Radio Australia codes of practice and guidelines.
These will include acceptable standards of decency, that the material did not invade an individual's privacy, and the person knew the conversation was recorded, and if not, they were asked for permission before the broadcast of the words.
"Southern Cross Austereo welcomes the opportunity to participate in the ACMA investigation and will fully cooperate," Southern Cross chief executive Rhys Holleran said in a statement.
A key issue is who at the station authorised the broadcast of the call to go ahead.
Under standard licence conditions, a commercial radio licensee cannot broadcast material gathered through "interception and surveillance" as specified under law.
Sydney's 2DayFM has two existing extra licence conditions related to decency and the protection of children, following earlier breaches by the Hot 30 Countdown program, the Kyle and Jacki O Show and programs presented live to air by Kyle Sandilands.
If ACMA rules the station breached its licence condition, the penalties include more measures to improve compliance, the imposition of extra conditions, and licence suspension or cancellation.
ACMA could also pursue a civil penalty in the Federal Court or refer it to the Director of Public Prosecutions (DPP).
But the regulator has no power to impose fines or stipulate the removal of presenters.
Communications Minister Stephen Conroy said the independent ACMA should be allowed to conduct its investigation into the hoax call without interference.
"It is inappropriate for the government to comment while this investigation is continuing," he said in a statement on Thursday.
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