Chile: Concerns regarding Sugar monopoly

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.