If a firm has a potentially anti-competitive distribution arrangement that is covered by a block exemption there would be no need to apply to the regulator individually under the new Competition Law, thereby saving time and expense on both sides.
Block exemptions are not uncommon in the European Union for certain types of distribution arrangements.
For example, in the motor trade sole dealerships for marques of car are recognised as an established pattern of trading even though at first sight they might appear to be at odds with the principles of fair competition.
The matter is of interest to some local businesses and several questions were raised at a recent Jersey Chamber of Commerce seminar.
The part of the new Law which allows the Economic Development Committee to issue group exemptions will not come into force until 1 November.
The JCRA believes the Economic Development Committee should wait until the law has been in place for six months before issuing any such orders.
Bill Brown, executive director of the Jersey Competition Regualtory Authority (JCRA), said any Jersey businesses applying for exemptions would have to show that their practices were not a barrier to competition and served to improve the flow of goods and services to consumers.
He also said there were likely to be a number of exclusive distribution arrangements in the Island which firms should report to the JCRA, to make sure they were on the right side of the Law.
Mr Brown said at the present time the JCRA could not forecast how many individual applications for exemptions it might receive and it would be unwise to assume in advance, given the particular features of the Jersey market, that the EU model would be appropriate for the Island.
The consultation document is on the website www.
cra.
e and interested parties are invited to comment in writing by 5 pm on 5 August.
