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Telcos will have to return to Royal Court to appeal GCRA fines after Court of Appeal verdict

THE long-running regulatory action taken by the Guernsey Competition and Regulatory Authority against Sure and JT over an alleged conspiracy on the development of mobile networks is to return to the Royal Court.

The Court of Appeal has found that the Royal Court was wrong to set aside the authority’s decision on the basis that the telcos had not been given a fair hearing, and has sent the case back to the Royal Court for final determination. .
The Court of Appeal has found that the Royal Court was wrong to set aside the authority’s decision on the basis that the telcos had not been given a fair hearing, and has sent the case back to the Royal Court for final determination. . / Guernsey Press

The Court of Appeal has found that the Royal Court was wrong to set aside the authority’s decision on the basis that the telcos had not been given a fair hearing, and has sent the case back to the Royal Court for final determination.

At stake are significant fines of nearly £3m. on Sure and £439,608 on JT levied by the competition regulator.

The telcos appealed the fines to the Royal Court where Bailiff Sir Richard McMahon ruled in their favour, finding that the process followed by the GCRA had not been fair.

The regulator appealed on this point to the Court of Appeal and was successful in a judgment published last week. The case will now return to the Royal Court so that substantive grounds of appeal can be decided.

‘This decision by the Court of Appeal is important because it underlines that the GCRA has followed best practice and conducted its investigation into this matter correctly, ensuring both parties were given the opportunity to defend their actions,’ said GCRA chairman John Curran.

The GCRA said that legal action was always a measure of last resort, but it had a responsibility to act where it believed competition and consumers were at risk.

Sure said it welcomed the Court of Appeal offering greater clarity in the law. But it said that the judgment did not determine whether the infringement decision was correct.

‘We remain confident in our position and look forward to those substantive issues finally being resolved by the Royal Court,’ said Sure Group CEO Alistair Beak.

‘We hope that the remaining proceedings can now be concluded as efficiently as possible, bringing this long-running litigation to a close and providing certainty for all parties.

‘This litigation has been ongoing for more than seven years and has already consumed millions of pounds in public and private resources.

‘It is important that public money is used carefully and proportionately.

‘Regulators have an important responsibility not only to enforce the law where appropriate but also to ensure that prolonged litigation represents value for the taxpayer and delivers tangible public benefit.’

Sure said it continued to invest millions in local telecoms services and the island’s future.

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