• Arrangements between businesses at different levels of the market no longer require approval under Jersey’s competition law – provided they adhere to specific conditions
• The new Order will reduce the administrative and financial burden on companies
• The Jersey Competition Regulatory Authority (JCRA) will be able to focus on areas that pose a greater risk to competition
A new Order (Tuesday 11 April 2023) taken effect, reducing the regulatory administration that Jersey firms will face when making specific kinds of supply and distribution arrangements.
The new Competition (Vertical Arrangements Block Exemption) (Jersey) Order 2023 ends the requirement for businesses to obtain regulatory approval by exempting certain vertical arrangements, provided that they meet specific conditions.
The JCRA’s Chief Operating Officer, Sarah Price, said: “Jersey law prohibits arrangements between two or more businesses in Jersey that hinder or prevent competition in Jersey unless they satisfy certain conditions and are approved in advance. This order will help provide clarity for arrangements between businesses operating at different levels of the production or distribution chain that may otherwise have needed the JCRA’s prior approval.”
The Minister for Economic Development, Tourism, Sport and Culture, who has responsibility for competition policy, Deputy Kirsten Morel, said: “This Order lowers the barriers to doing business for local companies by removing the unnecessary burden of seeking regulatory approval for specific efficiency enhancing agreements.
“Exempting certain vertical arrangements simplifies procedures, reduces financial and administrative costs for businesses, and helps consumers who will benefit from continued or even enhanced access to goods and services.”
Stephanie Liston, Chair of the Authority, also welcomed the new Order, which will allow the Authority to focus its attention on behaviour which may harm competition in Jersey.
The Order is part of a package of projects designed to ease the process to doing business in the Island, contribute to economic growth, develop Jersey’s economy and enhance consumer welfare. They are:
- A consultation being led by Jersey Business Ltd to identify the perceived and real barriers to doing business in the Island. The outcomes and recommendations will be used by Government
- An assessment of how Jersey could reduce barriers to inward investment, which will inform the forthcoming Inward Investment Strategy.
- An automatic voter registration system which will provide a simple and digital process to determine eligibility to vote, necessitating a harmonisation of data to deliver a centralised data source.
- The encouragement of greater access to finance for both residents and businesses in Jersey.
- A consultation seeking views on proposed changes to Jersey’s competition law to maintain an attractive and competitive business climate
- Updating Jersey’s intellectual property framework
Deputy Morel said: “If Jersey is going to be more productive, we have to have a business environment which adapts to the changing marketplace. These changes will help us to do just that.”
Government of Jersey News Release