Chile: Multinational challenges competition authority

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…”

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

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