2Day FM wins appeal for Royal prank

Radio station 2Day FM has won an appeal against a national media watchdog finding that it committed an offence when it broadcast the infamous royal prank call.

The Sydney radio station launched action in the Federal Court last year in an attempt to prevent the Australian Communications and Media Authority (ACMA) from finding the station committed an offence or was in breach of its licence.

The court action related to the 2Day FM's December 2012 prank call, in which two hosts talked to a nurse at a UK hospital about the then-pregnant Duchess of Cambridge.

After the call by 2Day FM's Mel Greig and Michael Christian gained international media attention, the nurse who revealed details about the Duchess's condition took her own life.

ACMA completed a preliminary report into the incident in June 2013 and found 2Day FM, in broadcasting the recording of the private conversation, breached the NSW Surveillances Devices Act.

The radio station submitted in the federal court last year the ACMA was not authorised to make a finding that it had committed a offence.

The station argued it was up to the courts to decide if a licensee had committed a criminal offence.

Justice Richard Edmonds last November ruled in ACMA's favour but his finding was set aside on appeal on Friday.

The full bench of the Federal Court allowed 2Day FM's appeal because Justice Edmonds erred in his construction of parts of broadcasting law.

ACMA's determination that 2Day FM breached its licence condition was also set aside.

The court ordered the media watchdog pay the radio station's costs.