This South American country has a series of entities that promote and defend free competition within its markets.
Foreign companies seeking to expand their businesses in Chile need to be aware that the country guarantees free competition through agencies that are responsible for preventing anti-competitive crimes and for actively encouraging and strengthening free competition in its markets.
What institutions defend free competition in Chile?
The entities with this mandate—the National Economic Prosecutor’s Office (Fiscalía Nacional Económica, FNE), the Antitrust Court (Tribunal de Libre Competencia, TDLC), and the Supreme Court—have been charged with identifying and sanctioning anti-competitive practices within their respective areas of responsibility.
What types of conduct are sanctioned in relation to violations of free competition in Chile?
The practices sanctioned can include anti-competitive agreements, abuse of a dominant position, and unfair competition, among others.
- Anti-competitive agreements: agreements between different market participants intended to lessen market competition. For example: collusion, resale price fixing and exclusivity agreements.
- Abuse of a dominant position: acts performed by a company with a strong market position, aimed at hindering the competitive process. For example, predatory price fixing, price discrimination and/or refusal to make a sale or provide a service.
- Unfair competition: acts intended to divert the clientele of another market participant through illegitimate means. For example, damaging the reputation of another market participant.
What are the sanctions for companies that violate free competition in Chile?
The penalties for companies that commit these violations include fines, which are determined by the economic gain obtained, the seriousness of the infraction, the deterrent effect, whether the violation is a repeated offense, and collaboration with the authorities.
To learn more in detail about this and other material relevant to starting your business in Chile, download the chapter of our step-by-step guide for Foreign Investors. Other chapters of the guide also contain useful information about Labor Laws, Taxes and Environmental Assessment.