Chile’s Bonds and Insurance Superintendence (SVS) has formally presented the National Economic Prosecutor (FNE) with their concerns regarding a possible monopoly forming within Chile’s sugar industry, which is dominated by local firm Iansa.
From the perspective of the country’s sugar beet growers, the situation would indicate a Monopsony, where one single company (Iansa) generates all of the demand for their product. Additionally, the marked has been divided into price bands. Both of these situations could be considered unfair obstacles to new competitors within the sector.
The SVS’s complaint also concerns Iansa’s vertical integration with one of the world’s leading sugar traders, E.D. & F. Man Holdings.
The FNE has decided to file the complaints away, arguing that the existence of a monopoly doesn’t necessarily imply the presence of abuse of dominance, and is thus not enough evidence to justify sanctions. However, the agency has recommended that a full revision be carried out on the formula used to set pricing bands so as not to harm sugar imports and to promote greater competition.
Full content: Estrategia
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
ConocoPhillips Acquires Marathon Oil for $22.5 Billion in Major Energy Sector Consolidation
May 29, 2024 by
CPI
Judge Denies Amazon’s Bid to Dismiss FTC Lawsuit Over Prime Membership Practices
May 29, 2024 by
CPI
Germany and France Advocate for Major EU Competition Reform
May 29, 2024 by
CPI
Equifax Accused of Monopolizing Employment Verification Market in New Suit
May 29, 2024 by
CPI
Car Battery Makers to Challenge EU Cartel Charges in Brussels
May 29, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Merger Guidelines Retrospective
May 21, 2024 by
CPI
Mergers of Complements
May 21, 2024 by
CPI
Personality Traits, Private Equity, and Merger Analysis
May 21, 2024 by
CPI
The 2023 Merger Guidelines: Lessons in the Importance of Incipiency, Modern Economics, and Monopsony
May 21, 2024 by
CPI
The 2023 Merger Guidelines: Sharpening Merger Analysis
May 21, 2024 by
CPI