Peter Davies, the regulator's director of radio and multimedia, faced the criticism when he addressed delegates at the Westminster Media Forum seminar on the Future of Radio.
Andrew Harrison, chief executive of the RadioCentre, started by suggesting Ofcom has "far more freedom to act within its current powers than it is choosing to take" and that it should be "championing the change of legislation, not just kicking its shoes into long grass".
Later, William Rogers, chief executive of regional radio group UKRD, claimed Ofcom "failed to grasp the reality" that current regulations are part of the problem facing the industry.
Last year UKRD handed back its Stroud licence, claiming restrictions made the station "simply uneconomic" and yesterday Rogers accused Ofcom of taking a "Nero approach" to the regulation of commercial radio.
He said: "The sector cannot respond to changing market conditions or commercial imperatives when it needs to be because Ofcom does not permit it.
"Apparently sympathetic rhetoric is one thing, action seems to be quite another."
In response to the criticism laid at his door, Davies acknowledged the industry has been facing "tough conditions" over the past couple of years.
"Regulation is only one element in the mix and probably not the most important, but relaxing regulation in some areas may help and we will do what we can," he said.
He also assured delegates Ofcom's Future of Radio consultation was a genuine, after a question from the floor queried whether the regulator intended to listen to the views of the industry.
The Future of Radio consultation closes on June 29.