They would be stopped from making any agreements which restrict competition and from abusing any dominant position.

The law is being worked on as part of efforts to keep down inflation and has been presented to politicians in the States.

The politician responsible, Deputy Gerald Voisin, says it will have far-reaching effects.

'Significant legislation'

He says the benefits for islanders will include lower prices and more choice for consumers.

He said: "This is a very significant piece of legislation for our island, legislation which will help to shape the future of our economy."

If approved, the law would give the island's Competition Authority the power to investigate suspected breaches of the law and impose fines of up to 10% of a business' turnover.