Antitrust & Competition Law in Chile

Who enforces competition law in Chile

Chile's competition rules are in Decree Law 211, which prohibits any act or agreement that prevents, restricts or hinders free competition, or tends to do so. Three institutions matter. The National Economic Prosecutor's Office (Fiscalía Nacional Económica, FNE) investigates and files cases. The Competition Tribunal (Tribunal de Defensa de la Libre Competencia, TDLC) decides them and reviews mergers on appeal. The Supreme Court hears appeals from the Tribunal's rulings.

The rules apply to conduct that has effects in Chile, not only to companies based here. A foreign company that sells to Chilean customers, joins an international cartel that raises prices in Chile, or buys a business with Chilean sales can find itself under review.

Many foreign businesses assume that competition law is only a concern for very large companies. In a market the size of Chile, a handful of players can be enough to raise questions, and the FNE actively investigates sectors such as retail, pharmaceuticals, transport and financial services. Early advice is far cheaper than responding to an investigation.

What we handle

Merger control: notify before you close

Since the 2016 reform (Law 20.945), transactions that meet turnover thresholds must be notified to the FNE before they close. The thresholds are set in FNE regulations and updated from time to time, so we check the current figures against the parties' sales in Chile. The review runs in phases measured in business days, can end in clearance, clearance with conditions or prohibition, and can be appealed to the Tribunal.

Closing early, known as gun-jumping, and failing to notify can lead to fines. Many global deals contain a Chilean filing requirement that is missed because the buyer and seller are both outside the country.

Cartels, dominance and everyday business risks

Price fixing, market allocation, output limits and bid rigging between competitors are treated as the most serious violations. Fines can reach a percentage of sales linked to the infringement, or a multiple of the economic benefit, and cartel conduct can lead to criminal liability and bans on holding director positions. A leniency program offers immunity or reduced penalties to the first companies that report a cartel.

Dominant companies can be sanctioned for abusive conduct, and ordinary commercial terms such as exclusivity, resale price restrictions and loyalty discounts are assessed case by case. Cross-directorships between competitors are also restricted. A basic compliance program can prevent most of these problems.

Common mistakes foreign companies make

Global companies often treat Chile as too small to matter and skip the merger filing analysis, or let local sales teams exchange price information with competitors at industry events. Others copy a global exclusivity policy into Chilean distribution contracts without checking local market shares.

A short briefing for local staff, a standard checklist for deals with Chilean sales and a clear internal rule on contacts with competitors prevent most issues. If an FNE inspection or request arrives, contact counsel immediately and do not delete anything.