BUSINESSES have raised concerns about legal uncertainty and increased regulatory risk in a consultation about changes to Jersey’s merger control regime.
Published by the government, the consultation response revealed that industry figures warned a proposed new “call-in” power for regulators could leave firms exposed to intervention even where deals fall below official thresholds.
Under the reforms, the Jersey Competition Regulatory Authority will be able to review mergers that do not meet mandatory notification levels – a move ministers describe as a “targeted safety net” to protect consumers in small or niche markets.
However, respondents cautioned that the power could create uncertainty for businesses and delay transactions, particularly given a call-in period of up to 30 working days.
Some also warned it could trigger a surge in precautionary notifications as firms seek to avoid being caught out later.
Concerns were also raised about the proposed financial thresholds for mandatory notification, with stakeholders suggesting they may be too low in light of inflation and Jersey’s economic scale.
But the government rejected calls to increase them, arguing that doing so would have only a “very limited impact” while increasing reliance on the call-in power.
The proposals could also have significant implications for Jersey’s key financial services sector. Industry figures warned that the rules could capture transactions involving banks, funds and service providers, even where there is little or no effect on local competition.
Ministers have declined to introduce exemptions, insisting a “sector-neutral” approach is necessary to maintain alignment with UK and EU competition frameworks.
The consultation attracted just four responses.
The government said the new system will reduce administrative burdens overall while allowing the regulator to focus on genuinely harmful deals.
Ministers have pledged new guidance and a voluntary notification process to improve clarity for businesses.
The changes are expected to come into force on 1 November 2026, with a formal review planned within two years.
The reforms would update the Island’s competition regime by enhancing merger controls, introducing new powers for market studies, and allowing the regulator to accept enforceable commitments from businesses to address competition concerns without full investigations.
