GCRA reduces MSG’s fine for non-compete clauses by 94%

The final decision, following appeals, was published by the Guernsey Competition & Regulatory Authority yesterday stating that the MSG had broken local Guernsey competition law.

‘This decision aims to support fair competition, innovation, and choice for local consumers,’ a GCRA spokesman said.

‘Non-compete clauses, which can prevent individuals from starting new businesses or working for competitors, may stifle innovation and limit options for the community.’

He added that non-compete clauses can be legitimate in some cases, but they often harm economies by limiting job options, suppressing new ideas, and making it harder for start-ups to succeed. This also keeps wages low and slows economic growth.

MSG chairman Steve Evans said the process had been running for nearly six years.

‘We welcome the fact that the matter is now closed,’ he said yesterday.

‘The GCRA’s findings today relate to an historic issue over the length of our non-compete clauses, as they were before we voluntarily reduced them in 2018. We took this action long before the GCRA began its investigation.’

The matter has dragged on, partly because it was appealed to the Royal Court in 2023.

Mr Evans said that Bailiff’s judgment upheld MSG’s appeals against the original decision and penalty from 2022.

The partnership still had issues with parts of the decision-making process, but said that it was not worth the legal and management costs of a further appeal.

With the fine dropping to £96,635 'it is not economic to spend more time and resources on an appeal,' he said.

‘Our motivation throughout has been to protect the emergency and elective healthcare services that we provide to the people of Guernsey under our contract with the States. We are pleased that we can now focus all our efforts on our primary purpose as doctors of improving the health of the community we serve.’