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GCRA - Half Year Report 2023

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HALF-YEAR REPORT<br />

FOR <strong>2023</strong><br />

Supporting and maintaining<br />

well-functioning markets<br />

Keeping the operation of markets and regulated companies under<br />

review to identify and address new forms of detriment and issues for<br />

potential action, and thereby to promote trust in markets.<br />

The <strong>GCRA</strong> believes that trust in markets us supported when: the rules are applied equally<br />

and impartially, consumer perception of value and choice is positive, and the regulatory<br />

framework is transparent, proportionate, and adaptable.<br />

Competition law investigation in medical sector<br />

The <strong>GCRA</strong> took a stance against excessive post-employment non-compete restrictions to<br />

foster entrepreneurship, worker empowerment, and economic growth. This was initiated<br />

by a complaint about a five year restriction being enforced by the Medical Specialist Group.<br />

The concern was based on the need for innovation and free movement of talent, where<br />

unfair restrictions hinder the growth of businesses and the economy in Guernsey. While<br />

non-compete clauses can protect intellectual property, they are often used excessively to<br />

prevent employees from working with competitors or starting their own businesses. <strong>GCRA</strong>’s<br />

stance has already led to positive developments in local healthcare, such as First Contact<br />

Health’s improved accessibility as well as changes to practices at the Princess Elisabeth<br />

Hospital such as acceptance of MRIs scans from other specialists than the MSG.<br />

Competition law investigation in<br />

mobile market<br />

This investigation concluded in 2021<br />

with a finding of a contravention under<br />

the competition law with a financial<br />

penalty being issued in July 2022. The<br />

contravention decision was appealed to<br />

the Royal Court and the appeal was heard<br />

in November <strong>2023</strong>. The appeal against<br />

the financial penalty was stayed, pending<br />

the outcome the appeal against the<br />

contravention decision.<br />

The <strong>GCRA</strong> believes<br />

that trust in markets<br />

is supported when:<br />

the rules are applied<br />

equally and impartially,<br />

consumer perception<br />

of value and choice<br />

is positive, and the<br />

regulatory framework<br />

is transparent,<br />

proportionate,<br />

and adaptable.<br />

The Authority has sought to promote fair competition, consumer protection, and economic<br />

growth, allowing businesses to attract talent without unnecessary barriers, thereby<br />

contributing to a more vibrant economy in Guernsey. The matter went to the Royal Court<br />

where the <strong>GCRA</strong>’s decision to prevent the effect of five year restrictions was not appealed<br />

against, but the Royal Court remitted the decision back to the <strong>GCRA</strong> to redo the decision to<br />

prohibit its two year restrictions based on the guidance given by the Court.<br />

6 | GUERNSEY COMPETITION & REGULATORY AUTHORITY <strong>GCRA</strong> | 7

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