On December 1st, 2011, the FNE filed a complaint before the Competition Tribunal (TDLC), accusing the three main production and commercialization companies of poultry meat in Chile (i.e., “Agrosuper”, “Ariztía” and “Don Pollo”) of cartelization. The cartel was implemented and monitored by the Poultry Trade Association (APA – Asociación de Productores Avícolas de Chile A.G.).
The FNE claims that the agreement between the aforementioned companies, overseen and coordinated through the Trade Association, aimed to reduce the production of poultry meat, controlling the quantity of meet offered in the national market and assigning market shares to the involved parties. The cartel would have been in operation for at least 10 years.
Taking into account the severity of their actions, the duration of the conduct, the market power the agreement conferred to the companies involved and the product (poultry meat is an essential product for consumers), the FNE asked for the maximum penalty established in the act to be applied to each company cartelized – that is, 30.000 UTA (around USD 26 mil.) each. Additionally, the FNE asked for both a penalty of 20.000 UTA and the dissolution of the Trade Association, due to its central role in coordinating and maintaining the cartel.
This is the first time where the FNE makes use of its new power to search and seize any kind of object and documents that can be used as proof of the existence of a collusive agreement, and hence constitutes a milestone in the history of cartels’ prosecution in Chile.
Click here for the press release in Spanish and here for an electronic copy of the original complaint.