Views wanted on laws to support Competition Act

The Office of Fair Trading is bringing forward the secondary legislation

Steps to modernise the Isle of Man's competition laws are set to move forward, the Office of Fair Trading has said.

Views are being sought on secondary legislation governing anti-competitive practices, which would bring the island in line with UK standards.

The new rules would also cover a notification period for mergers, and ensure the watchdog undertakes investigations in a fair and transparent manner.

The Competition Act was passed in Tynwald and granted Royal Assent in 2021, but is yet to be brought into force.

The new laws will replace the 1996 Fair Trading Act.

The secondary legislation considers a number of aspects, including how investigations into suspected anti-competitive behaviour would be carried out, and the investigation process into proposed mergers.

'International standards'

There has previously been no policy on mergers in place on the island.

The draft document outlines proposals for the Office of Fair Trading (OFT) to be given powers to launch an investigation where it suspected anti-competitive practices had taken place or where it believed a market was "not functioning in the interests of consumers or the economy".

Views are also being sought on the OFT being able to impose fines or restitution based on factors including the seriousness of the infringement and the extent and likelihood of harm being caused to the competition, consumers or third parties.

Under the proposals, merger investigations would only cover the "domestic sectors of the economy", such as retail and construction.

Industries with customer bases abroad, including banks, e-gaming, and shipping, would not be included.

Following the consultation, which is is available online until 5 January, secondary legislation is due to be submitted to Tynwald in early 2024.