Competition (Jersey) Law 2005: Block Exemptions: Approval in Principle

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A decision made 29 July2016:

Decision Reference: MD-C-2016-0090
Decision Summary Title :	Competition (Jersey) Law 2005 – Block Exemptions		Date of Decision Summary:	27/07/2016
Decision Summary Author:	Director Strategic Development		Decision Summary: Public or Exempt? (State clauses from Code of Practice booklet)	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	N/A
Written Report Title :	Block exemptions development		Date of Written Report:	27/07/2016
Written Report Author:	Director Strategic Development		Written Report : Public or Exempt? (State clauses from Code of Practice booklet)	Public
Subject: Competition (Jersey) Law 2005 – Block Exemptions
Decision(s): The Assistant Chief Minister approved in principle the development of block exemptions under the Competition (Jersey) Law 2005 in the four areas recommended by the JCRA: fuel forecourt distribution agreements; motor vehicle trade agreements; insurance agreements; franchise arrangements. The Assistant Chief Minister notes that the block exemption on fuel forecourt distribution agreements will be subject to close scrutiny. Proposals will be subject to consultation with colleagues in Treasury and the Infrastructure Department at the appropriate time because of long standing concerns about the operation of the fuel markets. * * The Assistant Chief Minister notes that he has an interest in lease income from a retail fuel outlet, which is limited to a potential indirect conflict of interest. It is not possible to say at this early stage whether this represents a conflict of interest. However, should a conflict of interest arise then consideration will be given as to how that should be managed.
Reason(s) for Decision: Competition Law prohibits certain types of arrangements that have the object or effect of hindering competition in the supply of goods and services to an appreciable extent. The Minister can Order that some types of arrangement are exempt from this general prohibition in order to overcome the problem of having to notify all agreements that might need to be cleared by the Authority. Exemptions would apply to agreements where it is clear that the classes of agreement would not be harmful to competition, or because they offer substantial benefits to consumers and businesses that outweigh any potential harm. Block exemptions can improve legal certainty for businesses, reduce the overall cost of competition compliance for business and enable the Competition Authority to focus its resources in areas where it can best contribute to protecting economic development.
Resource Implications: There are no additional resource implications. Staff time will be required within government as well as an allocation of drafting time. The JCRA will need to devote some resource from within its competition law budget to developing detailed proposals and drafting instructions with the Chief Minister’s Department.
Action required: Notify JCRA of the decision and request a detailed proposal for the block exemption framework.
Signature:		Position: Senator P F C Ozouf Assistant Chief Minister
Date Signed:		Date of Decision (If different from Date Signed):