Chile: CMPC to pay $150 million in damages

Chilean paper makers CMPC have agreed to pay $150 million USD in damages to Chilean consumers over 18 years old. The damages relate to the company’s role in a widespread price-fixing cartel that jacked up prices for tissue-paper products for more than a decade.

The company struck an agreement with the National Consumer Service (SERNAC) and the National Corporation for Consumers and Users (CONADECUS) to settle the amount. The final price-tag represents the largest collusion damages payment by a private company in the country’s history

“This is the most important agreement in the history of free competition cases, and the success of our efforts are due to the will and dedication manifested by all those who took part in the collective negotiations” said SERNAC’s Director, Ernesto Muñóz,

The agreement must be ratified by Chile’s courts. Once validated, all Chilean citizens over 18 years old will receive an amount estimated at $10 USD. The sum represents 78% of CMPC’s profits during the period through which the price-fixing agreement was in place, although still significantly lower than the $510 million initially demanded.
Full Content: Wall Street Journal

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