Chile: FNE moving on possible fuel monopoly

Chile’s National Economic Prosecutor’s Office (FNE) has kicked off a new investigation into the energy market after a complaint over alleged anti-competitive behavior in the gasoline sector.

The decision came after fuel distributor Surenergy filed a complaint against the National Energy Company (ENEX), Shell’s Chilean representative and controlled by the Luksic business group, accusing the company of engaging in predatory practices and abusing its dominant position in the gasoline market.

Diego Portales University academic, Mercedes Haga, has said that this a highly concentrated market, where both distribution and marketing is dominated by only two major players. Thus, she said, “the Prosecutor’s Office certainly has a role to play and it is that the regulation is complied with as appropriate and, if necessary, raise the level of regulation to solve the problems that already exist now …”

Based on the investigation, the FNE decided to analyze the entire fuel supply chain in the country, even widening its reach to alleged breaches of the Free Competition Tribunal’s ruling (TDLC) and the judgment of the Supreme Court Which authorized the purchase of Terpel by Enex some years back.

Full Content: Radio U. Chile

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