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Chile: New depths of supermarket collusion revealed

By  |  November 1, 2016

In the ongoing, 4-year saga involving Chile’s competition enforcer TDLC face off against major supermarket chains Walmart Chile, Cencosud and SMU over a major price-fixing scheme affecting the fresh poultry market between 2008 and 2011, new discoveries and revelations by competition watchdog FNE have revealed similar interactions between the supermarkets involving other products in the so-called ‘basket’ group – including turkey, pork and beef; sugar drinks, juices, wine, beer, milk, toilet papel and others. These possible cases of collusion are now being investigated by the FNE”s antitrust divisions.

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    The major supermarkets have in recent weeks succeeded in presenting more proof of cooperation and evidence intended to reduce any fines eventually recommended by the economic prosecutor.

    The FNE has said it considers the price-fixing scheme to have been facilitated by the high market concentration and important barriers to entry in the supermarket sector in Chile, with the three major players controlling 92.5% of the market (up from just 41% in 2008). These price-fixing schemes, the agency continued, also require the cooperation of major brands and suppliers.

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