Competition Law
Competition law seeks to protect free, open and fair competition in the marketplace, thereby providing benefits to both businesses and consumers. Jersey’s competition law, Competition (Jersey) Law 2005 was passed on 23 June 2004. All parts of the Law, with the exception of parts 2 and 3, came into force on 1 May 2005. Parts 2 and 3 came into force on 1 November 2005.
The purpose of the Law is to promote competition in the supply of goods and services in Jersey. The Law applies to all individuals and businesses, trades and professional associations, and States committees and public bodies insofar as they are carrying on commercial activities.
In general terms, the Competition Law outlaws any agreements, business practices and conduct which have a damaging effect on competition in Jersey or any part of it.
More specifically, the Law prohibits:
- arrangements between undertakings that hinder competition, or are intended to do so e.g. agreeing to fix prices, limit production, allocate markets or customers, or bid rigging (Part 2 of the Law);
- the abuse by one or more undertakings of a dominant position in a market (Part 3 of the Law); and
- certain mergers and acquisitions, unless the prior approval of the JCRA is obtained (Part 4 of the Law).
Under the Law, the JCRA has the power to investigate an undertaking it has ‘reasonable cause to suspect’ is involved in anti-competitive activities and to impose financial penalties and other penalties where appropriate. In addition, third parties may be able to claim for damages, including punitive damages, in the Royal Court.
The Law requires the JCRA to deal with competition questions in Jersey as consistently as possible with similar questions under competition law in the European Union.
The prohibitions against arrangements hindering competition and abuses of dominance in Parts 2 and 3 came into force on 1 November 2005. The requirement to seek JCRA approval for certain mergers and acquisitions, contained in Part 4, came into force on 1 May 2005.
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