Criminal Penalties Chill Innovation

This provision makes it a criminal offense to provide false or misleading information to the NCA, with penalties up to 3 years imprisonment—even for negligent errors. For digital innovators navigating complex requirements around OTT services, data protection, and cybersecurity, this creates severe compliance risk. Startups and small digital businesses may avoid engaging with regulators about new technologies or business models due to fear of criminal prosecution for inadvertent mistakes, stifling the proactive regulatory dialogue essential for innovation. The broad scope ("matters relating to the objects and functions of the Authority") combined with criminal penalties for negligence exceeds typical democratic practice and disproportionately burdens resource-constrained innovators.