Chile: Experts raise doubts about proposed Competition Law

Economic experts have raised several doubts regarding a proposal being considered by Chile’s congress for reforms to the country’s Competition Law.

The experts expressed their concern regarding the proposal to raise possible fines for violations amounting to up to 30% of total sales for the relevant period, which they consider excessive, as they may jeopardise the survival of affected companies, thus reducing overall competition.

Concerns were also raised regarding a perceived lack of clarity on the definition for violations, as well as the Standard of Proof required to confirm infractions. Experts also asked for further detail on rules for company mergers.

Finally, experts criticised the new powers proposed for Chile’s National Economy Auditors (FNE), especially considering the new law’s inclusion of possible jail time for serious infractions. Such new powers would require additional coordination and the sharing of authority between the FNE and Chile’s public ministry.

Full content: Diario Financiero

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