Successful defense against a 214,000 PLN fine from UKE
An Internet provider received an order to pay for reporting errors. We found a loophole in the interpretation of regulations, which reduced the penalty to zero.
HostPol is a local internet provider from Wielkopolska that faced the specter of bankruptcy due to an error in the paperwork. The Office of Electronic Communications (UKE) imposed a huge penalty on them for a delay in the SIIS report. We entered the game when the case seemed lost, and the company's lawyers advised taking a loan to pay the fine.
The challenge
The company was late with sending infrastructure data by 14 business days. Officials, using rigid brackets, calculated a fine of 214,382 PLN. For a company employing 8 people and serving 1,127 subscribers, such an expense would mean an immediate loss of financial liquidity. The problem was that state systems did not accept the report due to a minor technical error in the file format, which the office interpreted as a total lack of cooperation.
Our approach
Work began on August 7, 2024, with a full audit of the client's server logs, which took us 43 hours. Instead of writing emotional pleas for mercy, we focused on hard technical data. We proved that HostPol attempted to send the report 3 times before the deadline, but the office's API rejected the connection. Our team prepared a 19-page defense position, which step by step broke down the officials' arguments about deliberate avoidance of duties.
The solution
We applied a precise interpretation of Article 209 of the Telecommunications Law, pointing to the low harmfulness of the act. We demonstrated that the delay did not affect state security or competition on the market. Additionally, we implemented a Python script in HostPol that automates checking the correctness of files before sending. Thanks to this, the company now has proof of every attempt to contact UKE servers, which secures them for the future.
Results
After two rounds of explanations, the Office of Electronic Communications completely dismissed the proceedings. The penalty was reduced to zero, and the company only had to cover the costs of our support, which amounted to 14,280 PLN net. This is a saving of 200,102 PLN in cash.
Timeline
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August 7, 2024Commencement of technical audit and server log analysis.
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August 18, 2024Submission of official explanations to the UKE Inspection Department.
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September 2, 2024Explanatory meeting with inspectors handling the case.
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September 24, 2024Receipt of a final decision to waive the penalty.
"We were sure that these 214 thousand would finish us off and we would have to lay people off. Srivakula Gov Affairs found an error in the official system that our lawyers didn't even look for. It saved the company."