Exclusive Supply Contracts: When Are They Anti-Competitive?

Generally, undertakings are prohibited, pursuant to Article 8 of the Competition (Jersey) Law 2005 (the "Law"), from making arrangements with other undertakings that have the object or effect of hindering to an appreciable extent competition of the supply of goods or services within Jersey. Such arrangements are known as anticompetitive arrangements. The Jersey Competition Regulatory Authority (the "JCRA") is responsible for, amongst other things, enforcing the provisions of the Law.

This note is not a comprehensive guide to the Law and deals only with the key concepts and obligations that arise in relation to exclusive supply contracts.

Hindering Competition

An arrangement between undertakings may be said to hinder competition if it restricts the ability, and/or the basis upon which, the parties may freely contract with others. The JCRA will assess the effect of an arrangement on competition in Jersey by examining it in its market and economic context.