Competition Law at Chile
Here’s an overview of Competition Law in Chile:
Competition Law in Chile
1. Legal Framework
Chile has a well-established and modern competition law system primarily governed by:
Law No. 20,169 of 2007 (Ley de Defensa de la Libre Competencia) – the main Competition Law.
This law replaced and updated earlier statutes to create a robust framework for promoting competition and preventing anti-competitive behavior.
2. Key Institutions
Fiscalía Nacional Económica (FNE): The National Economic Prosecutor's Office is the main enforcement agency responsible for investigating and prosecuting competition law violations.
Tribunal de Defensa de la Libre Competencia (TDLC): The Competition Tribunal adjudicates cases brought by the FNE or private parties and imposes sanctions.
3. Prohibited Practices
Anti-competitive Agreements: Cartels, price-fixing, bid-rigging, market allocation, and other collusive agreements are strictly prohibited.
Abuse of Dominant Position: Firms with a dominant position cannot engage in exclusionary or exploitative practices that harm competition.
Merger Control: Significant mergers and acquisitions must be notified to the FNE and approved before completion if they exceed certain thresholds.
Unfair Competition: Practices that mislead consumers or distort competition are regulated.
4. Enforcement and Sanctions
The FNE conducts investigations, often including dawn raids, collects evidence, and may negotiate settlements or bring cases before the TDLC.
The TDLC can impose fines, order the cessation of illegal practices, and approve or reject mergers.
Private parties can also bring actions for damages caused by anti-competitive behavior.
Sanctions can be substantial, including fines of up to 30,000 Monthly Tax Units (approximately several million USD).
5. Recent Developments
Chile actively updates its competition policies and enforcement practices to align with international standards.
Recent focus areas include digital markets, consumer protection intersections, and promoting competitive bidding in public procurement.
Chile is a member of the OECD and applies its recommendations on competition law.
Summary
Chile’s competition law framework is sophisticated and actively enforced by the Fiscalía Nacional Económica (FNE) and the Tribunal de Defensa de la Libre Competencia (TDLC). The law prohibits cartels, abuse of dominance, regulates mergers, and supports fair market competition. The system allows for both administrative enforcement and private litigation.
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