Chile: Tissue paper cartel case enters final stages

Jorge Morel, former CEO of Chilean paper empire CMPC, was to appear this Monday before Chile’s competition court. The hearing marks the end of the evidence gathering stage in the country’s investigation into widespread price-fixing in the tissue paper market. The case will now move to the final stages as authorities deliberate on a final resolution.

Eight months have passed since Chile’s Economic Prosecutor (FNE) went public with its accusations of collusion and price-fixing against CMPC and Swedish rival SCA. The case has deeply affected both Chile’s and the region’s markets, causing a series of changes in corporate governance, financial oversight, changes in market share and the creation of new competitors.

According to the FNE’s latest reports, in 2013 (the year when the alleged price-fixing deal ended) CMPC controlled 75% of the market, followed by SCA Chile with 11%, America’s Kimberly-Clark with 4%, and a further 10% divided among several independent brands. Kimberly-Clark would appear to have been the main beneficiary in the Tissue Paper debacle, increasing its share of the market to 7%.

Full Content: La Tercera

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