Chile: “Chickens Cartel” case revived with US$800M suit

The National Corporation of Consumers and Users of Chile (CONADECUS) has struck against poultry producers Agrosuper, Ariztía and Don Pollo over the infamous collusion case that took place between 1996 and 2010, and which was recently sanctioned by competition authorities. However, CONADECUS has revealed it will file a new lawsuit against the three companies before the Tribunal for the Defense of Free Competition (TDLC).

The action comes following an October 2015 ruling, where the Supreme Court confirmed that there was an agreement between the three poultry companies, coordinated by the guild they all belonged to – Association of Poultry Producers, APA – in order to limit production. The lawsuit seeks to compensate for damages caused, calculated by the company at around US$800 million in direct damages.

Almost four years after the ruling, CONADECUS and the Association of Consumer of Youth Organizations, and Consumers of Concepción, will seek to take advantage of recent amendments to the Consumer Law to seek these compensations.

The law in question, Law 21,081, approved on March 14, opens the door to compensation claims before the TDLC related to cases that have resulted in judgments by the same court, establishing new statute of limitation periods for several infractions.
“The new regulations require that there be a final judgment of the Supreme Court. The new law says that they are two years for prescription, but for these cases there are now four. Therefore, we have all that time to present it, ” said Hernán Calderón, president of CONADECUS.