Business Groups in the Economy

On September 29, 2023, at the request of the National Corporation of Consumers and Users of Chile (CONADECUS), the Tribunal for the Defense of Competition (TDLC) decided to initiate a regulatory recommendation procedure regarding the participation of business groups in different areas of the economy.

In its presentation, CONADECUS requested the issuance of a regulatory recommendation by the TDLC, in order to request the President of Chile to submit to the National Congress a bill on the Reduction of Aggregate Economic Concentration. To support its request, CONADECUS cites some reports, opinions and the so-called Anti-Concentration Law issued in Israel in 2013.

In its initiation resolution, the TDLC frames the regulatory recommendation process, and consequently the analysis that will be developed from it, in the following four aspects:

(i) the imposition of restrictions on pyramidal corporate structures of business groups exceeding a certain size;
(ii) the imposition of restrictions on the cross-participation of business groups between financial and other markets;
(iii) the consideration of the participation of conglomerates when allocating concessions or rights by the State; and
(iv) the establishment of a public registry of business groups above a certain size.
 
According to the law, the process that is just being initiated before the TDLC, may end in a proposal made by this special court to the President of Chile for the enactment of legal or regulatory provisions necessary to promote free competition, or regulate the exercise of certain economic activities that are rendered under non-competitive conditions. The recommendation that could arise from this process is not binding, but the Minister of State receiving the corresponding proposal must express his opinion on it.

Those who have a legitimate interest in participating in this process, have 30 working days from the publication in the Official Gazette of an extract of the resolution that initiated the regulatory recommendation file, to provide background information to the TDLC and to express their opinion in the corresponding public hearing.

CONTACT

Benjamín Grebe
Partner
bgrebe@prieto.cl

Andrea Von Chrismar
Counsel
avonchrismar@prieto.cl