Guernsey’s competition watchdog has won a significant appeal in its long-running case against JT and Sure, with the Court of Appeal finding the telecoms operators were given a fair hearing.

The Guernsey Competition and Regulatory Authority (GCRA) said the court had overturned an earlier Royal Court decision which set aside its findings.

GCRA Chairman John Curran said the latest ruling showed the watchdog had “followed best practice” and conducted its investigation correctly.

The case will now return to the Royal Court.

Alistair Beak, Sure Group CEO, said the firm “welcomed” the ruling, adding: “Greater clarity in the law is beneficial for regulators and businesses alike.”

He said it was “important to recognise that today’s judgment does not determine whether the GCRA’s infringement decision was correct”.

“The Court of Appeal itself referenced that the GCRA’s decision ‘may be vulnerable on other bases’, while the Bailiff had previously indicated that Sure and JT would likely have succeeded on a number of the substantive grounds of appeal had it been necessary for him to determine them.

“We therefore remain confident in our position and look forward to those substantive issues finally being resolved by the Royal Court,” he added.

Fair hearing

The case centres on allegations that JT and Sure secretly exchanged commercially sensitive information and coordinated their behaviour in the mobile market.

The GCRA previously concluded that the conduct breached competition law and argued it could have weakened competition in a market it described as vital to islanders, businesses and Guernsey’s digital future.

JT and Sure challenged the decision, arguing they had not received a fair hearing.

However, the Court of Appeal found the Royal Court was wrong to set aside the GCRA’s decision on those grounds.

‘Important’ ruling

Mr Curran said the judgment was “important” because it showed the GCRA had ensured both companies were given the opportunity to defend their actions.

“Competition law exists to protect consumers, promote innovation, and ensure markets operate fairly,” he said.

The case will now return to the Royal Court, which will consider the underlying competition issues and whether the conduct identified by the GCRA breached Guernsey’s competition laws.