Jersey Telecoms has been fined £40,000 for setting its wholesale prices too high so other telecoms companies could not compete on price.
Markets regulator CICRA said JT was warned about the breach - but did not deal with it quickly enough.
The Jersey Competition Regulatory Authority (JCRA) says over a 13-month period, which ended in February 2020, JT priced its wholesale services to other telecoms providers at a level which restricted companies abilities to compete with JT, therefore "limiting consumer choice and value".
The JCRA says "JT did not deal with the issue in a timely and effective way even after the JCRA made JT aware of it".
This was a breach of JT's Licence conditions and it is not the first time JT has been warned of engaging in margin squeeze. We consider the level of penalty to be appropriate. It is essential, for the maintenance of a healthy and competitive economy and to protect consumer choice and value, that activity of this nature is penalised. JT has accepted it breached its licence condition and has subsequently cooperated with the Authority in our investigation, and we have taken that into account in arriving at our conclusions.
JT says it is "disappointment" with the decision but "accepts" the JCRA’s conclusion.
Our discussion with JCRA over the financial model used to regulate this market goes back over a number of years, and we hope it can be developed further in the future. Notwithstanding that, this particular issue comes from a genuine error on our part, and we have written to the group of customers involved to explain the situation to them. We will now be working with JCRA to ensure our processes are reviewed, to prevent any repeat.