Guernsey Press

Competition regulator working on next step after court ruling

GUERNSEY’S competition regulator is considering its next step after the Court of Appeal rejected all three grounds to its application to appeal a Royal Court decision.

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Guernsey Competition & Regulatory Authority chief executive Michael Byrne. (Picture by Luke Le Prevost, 32390491)

The long-running issue started in 2020, when the Guernsey Competition and Regulatory Authority ruled that the Medical Specialist Group had engaged in anti-competitive practices in restricting work opportunities for doctors who leave the group, and later ordered it to pay a £1.5m. fine.

But the Royal Court then found that the GCRA decision to sanction the MSG was unreasonable and/or based on material errors as to the facts.

The latest move saw the Court of Appeal reject a bid to appeal the Royal Court judgement.

GCRA chief executive Michael Byrne said it had now considered the latest judgment, which was issued on Monday.

‘It confirms the GCRA’s original decision that MSG’s use of five-year non-compete restrictions was an infringement of competition law, and could not be challenged by MSG, who in any event withdrew their appeal on this significant element of its decision,’ he said.

‘Lord Anderson’s judgment does however support the Bailiff’s decision that the GCRA should further consider its decision to strike down the MSG’s continued use of two-year non-compete restrictions for its partners, and its 18-month restrictions for associates.’

He added that the Royal Court had indicated that it was not persuaded that MSG’s two-year restriction on its specialists could be justified.

‘Competition law is a novel law for Guernsey and the GCRA has sought clarity through the Court of Appeal process on aspects of its decision, following the earlier decision by the Royal Court that it should look at parts of its decision again,’ he said.

‘Now that we have the opinion of the eminent judge, the GCRA will consider whether it has the clarity it sought on an element of its original decision where the Royal Court wants it to re-look, or whether it should proceed to the Court of Appeal panel for a fuller hearing on this area.

‘The GCRA will in any event consider its options going forward and engage with the MSG to try to reach an agreed outcome, given the welcome clarity from the court.’

The MSG had previously said this had been a 'painful process' and it was keen to now focus on helping patients.