Guernsey's JT and Sure breach competition law

JT and Sure broke competition law according to the Guernsey Competition and Regulatory Authority

Mobile phone and broadband firms JT and Sure worked together to control the provision of mobile networks in Guernsey, an investigation has found.

The Guernsey Competition and Regulatory Authority (GCRA) found the companies broke competition law through undisclosed communications.

It said the information shared between the companies went "well beyond legitimate purposes".

Sure said it would be appealing against the decision.

The GCRA said it would now consider whether to impose a financial penalty on JT and Sure.

The GCRA said its investigation initially focussed on "a suspected agreement in relation to 5G" but was then expanded "to include all networks operated by Sure and JT".

The watchdog found that over about a year JT and Sure "privately developed a joint plan without disclosing it to their regulator or the States to mutually benefit their home markets".

The GCRA said the firms shared information on their commercial strategy for introducing next generation mobile networks "at a slower pace than that sought by the States of Guernsey".

The report said JT and Sure agreed a "line to take" that they were working to introduce the technology to Guernsey in line with, or ahead of the UK "while privately agreeing not to do so".

According to legislation competitors must make independent decisions about their plans and are not allowed to exchange information with each other on their commercial strategy.

The GCRA said anti-competitive behaviour resulted in less value for money, less innovation, and less choice for consumers.

Competition law was introduced in Guernsey in 2012 with an aim to provide fair competition between telecoms, postal and electricity sectors.

Alistair Beak, CEO of Sure, denied entering into an anti-competitive agreement with JT.

He said: "Sure absolutely disagrees with the final decision and will now be appealing it through the Royal Court.

"We are very confident that this will be confirmed in due course following the appeal which will now be filed against this decision."

Tom Noel, director of corporate affairs and sustainability at JT, said: "JT has and always will be fully committed to ensuring that the market is fair and open and operates in the interests of consumers.

"We note the stance now being taken by the GCRA with concern and, frankly, surprise."

Follow BBC Guernsey on Twitter and Facebook. Send your story ideas to [e-mail].