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Chile: Congress approves tougher penalties on collusion

By  |  June 20, 2016
Chile: Congress approves tougher penalties on collusion

Chile’s Chamber of Deputies has passed, by a wide margin, a law proposal that would strengthen the existing penalties for competition violations. The chamber approved a majority of the changes added to the bill by the Senate in the previous round of revisions. However, the congressmen rejected in particular the modifications added to Article 64, which set limits on the National Economic Prosecutor’s exclusivity for acting on violations. The text will be further reviewed by a Mixed Commission.

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    Economy Minister Luís Céspedes explained the move, saying that – when dealing with highly technical cases – the National Economic Prosecutor would be best placed to effectively deal with violations. “The FNE has done a first-rate job in terms of combatting cartels. In 2009, President Michelle Bachelet’s administration gave the FNE the authority to intercept telephone calls, confiscate computer records and raid corporate offices, which has allowed a significant amount of cartels to be identified and to clearly fight back against collusion and competition violations” said Mr. Céspedes.

    The law raises possible penalties to up to 30% of sales on the product or services involved in price-fixing collusion deals, or up to double the earnings for individual perpetrators. This way, the law hopes to make fines act as an effective deterrent. Individuals accused of orchestrating cartels will also be barred from holding managing positions in State companies, several types of lucrative company or any directing position in trade or sector unions or professional colleges for up to 10 years.

    Full Content: El Economista

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