New legislation targets market dominance
The Government has proposed a series of measures under new competition legislation that could see businesses facing hefty fines for colluding to fix prices, share markets or rig bids.
Under the proposed Competitions Act 2026 — which the Government said is built around market fairness — breaches of the law through “hardcore cartel conduct” can attract criminal penalties of up to $1 million and five years’ imprisonment.
A dominant firm must not abuse its position through unfair pricing, restricting supply, discriminatory terms or tying arrangements, under the suggested legislation.
Businesses which intend to merge or those held under acquisitions must receive approval from a proposed Competition and Regulatory Authority before they proceed.
The existing Regulatory Authority will be renamed as the CRA to administer the policy through a competition division with a dedicated healthcare competition unit.
The new body can unconditionally approve, approve with conditions or block a merger that would substantially lessen competition.
It comes as the Government advances consultation to modernise competition legislation in Bermuda.
A consultative paper on the process — which remains open until September 15 — is in public circulation for input.
A government spokeswoman said legislation on market fairness aligned with commitments in the 2024 and 2025 Throne Speeches.
Alexa Lightbourne, the Minister of Home Affairs, said: “In an economy of our size, some concentration is inevitable. The question is whether the rules make that concentration serve consumers.
“This consultation asks Bermudians to help settle those rules. The views you share will shape the legislation the Government brings to the legislature.”
The proposed law would establish rules to promote fair competition, address harmful business conduct and provide for the review of certain mergers and acquisitions in essential sectors.
The Government said the move was necessary as Bermuda is one of the few developed jurisdictions without a general competitions law, with the consequences “visible on the cost of living that Bermudians experience every day”.
Although it did not list companies by name, the consultative paper mentioned the merger of three major health insurers to a single group which also operates medical practices and said no authority was in place to review the merger for competitive impact.
It said in February 2026 the group announced that high-cost prescriptions must be filled exclusively at one pharmacy group.
Allshores, a merger between local insurers BF&M and Argus, was unveiled last year.
The company announced in February that its clients would be able to purchase certain high-cost prescription drugs only from Phoenix-owned pharmacies, but could fill other prescriptions elsewhere.
Mention was also made of the merger of two grocery groups in October 2024, adding that “grocery prices have risen 38 per cent over the past decade … that is more than double the rate of general inflation”.
At that time, The MarketPlace and The Supermart announced a merger, a move the parties said “unites two of Bermuda's most trusted grocery retailers, creating an enhanced shopping experience for customers while strengthening the island’s food security”.
The paper states a licensed electricity utility retains a “legislated monopoly” over the sector, while the media landscape is dominated by single print newspaper since 2014 following the amalgamation of two entities.
The consultative document said consumer protection in Bermuda is administered by the Consumer Affairs section within the Ministry of Home Affairs.
The unit, governed by the Consumer Protection Act 1999, handles consumer complaints, investigates unfair business practices, administers the Consumer Affairs Board and is responsible for price monitoring and essential commodity oversight.
Its mandate also overlaps with the Cost of Living Commission’s functions under the Cost of Living (Essential Commodities) Regulations 2022.
The arrangement has served Bermuda for more than two decades, but according to the consultative document, it was designed for a pre-competition-law environment.
It stated that consumer affairs was conceived as a complaints-handling and unfair-practices body, not as a market regulator.
The spokeswoman said the framework will address anticompetitive harm that adds avoidable pressure to the cost of living, while recognising the realities of operating in a small island economy.
Feedback will shape the drafting of the Competition Act 2026 before it goes to the legislature.
Private sector project managers have been taken on to support stakeholder engagement and the collection and analysis of feedback.
The move was said to ensure the process is transparent, consistent and methodologically sound for advancement in the weeks ahead.
Feedback will be sought by those affected by the framework, include consumers and small, medium-sized and large businesses, industry and professional associations and legal and regulatory bodies.
The consultative policy document is available online at www.forum.gov.bm.
• For more information on the consultative paper on the Competitions Act 2026, see Related Media
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