A PYMNTS Company

Chile: Multinational challenges competition authority

By  |  December 8, 2015

SCA Chile, the local affiliate of the Swedish multinational which stands accused of entering an illegal collusion agreement with South America’s tissue paper leader, CMPC, has decided not to respond to the Economic Prosecutor (FNE) and their request for information. Instead, the company has entered an Exceptional Delay request before the Free Competition Defence Tribunal (TDLC), under the claim that “the prosecutor’s requirements lack a clear description of the actions and facts that are said to have taken place…”

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    yesSubscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

    Among the reasons presented for the requested delay, the Swedish multinational criticised the FNE over the manner of presenting their requirement, while adding that they have not yet been given full access to the regulator’s investigation. In response, the TDLC ordered both parties to respond to the requests, within three days of the announcement.

    The FNE claims to have unearthed an illegal agreement for market share between CMPC and PISA, today owned by SCA Chile, which goes back to the year 2000. However, SCA Chile has countered with it’s own version, alleging that any collusion between the two began in 2006, following serious economic pressure from CMPC. “The pressure to join included a damaging pricing policy implemented by CMPC, which caused heavy losses for SCA.” CMPC, on the other hand, has agreed to respond to the authorities request.

    Source: Pulso

    Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.