Regulator considering law changes after Royal Court defeat

Wednesday 14 February 2018

The Channel Islands competition regulator is considering changing the competition law after a recent defeat in the Royal Court, which may cost it as much as £1million.

JCRA – the Jersey Competition and Regulatory Authority – accused ATF fuels of abusing a dominant market position at the Airport fuel farm by failing to supply an operator with fuel for resale, and charging them more than previous suppliers.

ATF appealed against the decision in October last year and won their case, leading the Court to set aside the regulator’s decision – a move with potentially important consequences for the way in which the JCRA oversee local markets.

The regulatory body have now confirmed that they will not appeal the decision, and are set to talk to politicians on potential law reforms.

In a statement, they commented: “After giving the judgment serious consideration and reviewing the legal risks, CICRA has decided not to appeal the Royal Court decision. While there are important aspects of the judgment that merit an appeal, the legal costs (ultimately paid by the taxpayer) pose too high a risk should the appeal be unsuccessful. CICRA has therefore decided not to take the case further to the appeal court.

“In light of this judgment, CICRA will engage with policy makers to consider revisions to the competition law where appropriate to ensure it is better able to protect businesses and business sectors as it is tasked to do by the States of Jersey.” 

Pictured: The Royal Court quashed CICRA's ruling on ATF fuels.

The recent judgement, which was published in full in January, was the fourth time in under a decade that the Royal Court had quashed a JCRA decision. The company previously lost against telecoms providers Clear Mobitel (2011) and JT (2013 and 2017). 

Chief Minister Senator Ian Gorst has since pledged to review the regulator amid concerns over whether the taxpayer-funded body was still value for money for the island.

On 30 January, the Royal Court ordered CICRA to pay ATF's appeal costs on a 'standard' basis. It is estimated that these may be up to £1million.

Pictured: Senator Gorst said that Ministers would review the activities of CICRA in light of the recent court decision.

The States are also currently advertising for a new Competition Policy Advisor. “Predominantly ensuring the competition system and culture of competition in Jersey is as effective as it can be, the post holder will also assist with the development and maintenance of Jersey’s intellectual property framework. Reforming Jersey’s competition legislation and continued oversight and implementation of the competition framework action plan will be the initial priorities,” the advert reads.

The advertisement does not specify whether the role – remunerated at £55,989 per annum – will overlap with CICRA’s activities.