Competition and Antimonopoly

Wolfenson Lawyers understands the relevant aspects of the regulations on Free Competition and Antitrust in force.

In this sense, we understand the representation of our clients in litigation in contentious, non-contentious procedures and in compensation for damages derived from violations of DL No. 211, before the Free Competition Defense Court, Supreme Court and the others. courts of Justice.

 

We take care of consulting the National Economic Prosecutor's Office, in matters required by our sponsored. Providing legal assistance in the analysis of the commercial policies carried out in the respective markets in which our clients are involved.

Here is a legal guide to provide you with guidance on free competition law in Chile:

What are free competition policies?

Free competition policies are the different instruments by which the authority seeks to facilitate and increase business rivalry and with it healthy competition in the markets . In simple terms, we can say that these policies seek to provide the necessary means for companies to effectively compete when marketing their goods and services and to do so in accordance with the regulations governing these matters. Collusions are anti-competitive agreements that occur when there are several rival entities in the same market, they decide, instead of competing, to agree on some of the competition variables (such as, for example, the price or quantity of goods to produce).

 

What are the objectives pursued by free competition policies?

Through free competition policies, the authority, among others, aims to achieve:

a) efficient allocation of resources,

b) technical progress;

c) consumer welfare ; and

d) regulate the concentration of economic power for the benefit of competition.

 

What is being attempted to prohibit or deter through free competition policies?

Through free competition policies, the authority intends, among others:

a) prohibit agreements that allow competitors to engage in anti-competitive conduct (such as, for example, collusions);

b) prevent abuse of the dominant position held by certain companies in certain markets (an example of this practice could occur when a monopolist lowers its prices below its costs when glimpsing the entry of a competitor); and

c) promote the elimination of regulations, laws or norms that constitute obstacles to business activity (this power must be exercised when the current regulations unnecessarily trap competition in the markets).

 

Is it necessary to protect competition in the markets?

Competition is clearly beneficial for the markets and, therefore, it is essential that it is effectively supervised and protected by the authority. In addition, it encourages businesses to improve their performance, develop new products and respond to changing needs. Thanks to the competition, the following benefits are achieved, among others:

a) produce goods and services at the lowest possible cost;

b) better meet consumer demand ;

c) improve the quality of the goods and services offered in the market;

d) encourage the development of new products and production methods; e / compete efficiently in globalized markets ;

f) increase employment opportunities ; and

g) improve the population's standard of living through income growth .

 

Free competition in Chile What is the relevance of free competition in Chile?

Undoubtedly, free competition has become highly relevant in our country. Some years ago, free competition was not a priority issue for companies or for the authority. Currently it is, and it is expected that it will be even more so in the future. Chile's incorporation into the OECD has certainly contributed in the same direction. The importance that free competition has gained in our country is entirely positive given that, as has been pointed out, competition contributes to markets functioning correctly and efficiently.

 

What does the Chilean legislation on free competition establish?

The Chilean legislation on free competition is contained in DL 211 of the year 1973 , which has undergone various modifications. The main purpose of said legal body is to promote and defend free competition in the markets. This normative body establishes, among others:

a) the figures that attempt against free competition and its sanctions ;

b) the organization, functions and powers of the Free Competition Defense Tribunal (hereinafter also “ TDLC ”) and the National Economic Prosecutor's Office (hereinafter also “ FNE ”); and

c) the procedure by which the cases are processed before the TDLC . The regulations in question establish very high fines for violators, which, moreover, can be imposed in special procedures , quite abbreviated and where all the evidence or indications that the TDLC deems fit to establish the relevant facts are admissible. Furthermore, the TDLC values ​​the evidence given in the process not in a regulated manner, but according to the rules of sound criticism (that is, in accordance with the maxims of experience, logical principles and scientifically rooted knowledge). The foregoing means that the TDLC, for example, could endorse a fact with just an email or a mere recording of a phone call. The foregoing characteristics (high fines, brief processes and greater evidentiary liberalities to establish the facts) together with the extensive investigative powers of the FNE, respond to the need to devise a system capable of detecting, testing and sanctioning behaviors that are so serious and difficult to discover. as, for example, collusions.

 

It should be noted that in March 2015, a bill entered Congress that seeks to make new adjustments to DL 211 , mainly with regard to the following matters: (i) establish sentences of restriction of liberty to sanction those responsible for cases collusion; (ii) impose on those responsible for collusion cases accessory penalties of absolute disqualification to hold public positions or offices, positions of director or manager of State companies, positions of director or manager of public limited companies and managerial positions in professional associations or colleges , for a period of 5 years from the date the sentence is enforced; (iii) make the maximum amount of fines more flexible, so that said amount is determined in consideration of the economic benefit that the offense reported to the agent or in relation to the sales thereof; (iv) establish, in the case of collusions, prohibitions on contracting with organs of the State administration (including public companies) for a period of 5 years from the date the sentence is enforced; (v) modify the mechanism of compensated denunciation , mainly in order to make it compatible with the introduction of criminal sanctions to the system; (vi) establish criminal sanctions for those who provide false information to the FNE in the context of an investigation; (vii) grant affected consumers the possibility of filing compensation actions ; and (viii) establish a mandatory and preventive control system for concentration operations.

 

What are the authorities responsible for ensuring free competition in Chile?

The Chilean authorities responsible for ensuring free competition in the markets are the Court of Defense of Free Competition and the National Economic Prosecutor's Office . From a time to this date, our country has worked hard to perfect its free competition policies, which - to a large extent - has been done through empowering, perfecting and strengthening the TDLC and the FNE. Below we will briefly review the main characteristics of these organizations, in order to understand how they exercise their functions of promoting competition in the markets .

 

How is the Tribunal for the Defense of Free Competition formed?

The TDLC is a special court, made up of 5 ministers (3 lawyers and 2 economists). Its exclusive function is to prevent, correct and punish attacks against free competition. Therefore, it is who decides - for example - whether the behaviors carried out by market agents threaten or not against free competition .

 

What are the functions of the National Economic Prosecutor's Office (FNE)?

The main function of the FNE is to investigate facts, acts or conventions that impede, restrict or hinder competition in the markets. It should be noted that the FNE does not directly sanction non-compliance with the regulations on free competition , but (if it deems it appropriate) submits the results of its investigations to the knowledge of the TDLC , in order for it to adopt the appropriate measures or sanctions. This, either through non-contentious consultations or through contentious requests or demands . Another characteristic function of the FNE is to evacuate reports to the TDLC in the processes initiated by third parties (the latter when the law orders it or the TDLC requests it).

 

What are the behaviors sanctioned by the laws that regulate free competition in the markets?

The behaviors sanctioned by the laws that regulate free competition in the markets can be grouped in various ways, and it is not ruled out that the same facts can be subsumed within more than one classification. For the purposes of this work, we will divide these behaviors as follows:

• anticompetitive agreements: agreements between different agents aimed at limiting the existing competition in the market (examples of these behaviors are collusions, reselling prices and exclusivity agreements);

• abuse of a dominant position: actions taken by a single company-possessing market power-designed to erode the competitive process (examples of this behavior are predatory pricing, price discrimination and refusal to contract); and

• unfair competition: conducts intended to divert the clientele of a market agent by illegitimate means and contrary to good faith or good customs (examples of these behaviors are the abuse of other people's reputation, the dissemination of incorrect facts and the abusive exercise of Judicial actions).

 

What is market power?

Market power , for these purposes, we will define as the ability of a company to influence prices without losing market share. It is important to emphasize that, both in the cartels and in the other sanctioned conducts, the fines can be applied not only to the legal person but also to its directors or administrators and, in general, to any person who has intervened in the execution of the respective act. The fines applied to natural persons, moreover, cannot be paid by the legal person in which they exercised functions or by their shareholders or partners . It is also important to highlight that anti-competitive agreements (such as collusions ) can be materialized in a variety of ways, not requiring that they be in writing or that formalities of any kind be followed. Indeed, a mere conversation can be enough for the organization of a poster .

 

Collusion in tenders?

Although bid collusion is just one more kind of collusion, we have found it convenient to treat it separately since it has some distinctive features. The first thing to keep in mind is that the risks of collusion do not disappear due to the fact that the acquisitions are made through a bidding process . In other words, the collusive crime can be present and penalized even when the acquisitions are made through bids, whether they are public or private. Bid collusion consists of defrauding or manipulating the competitive process that is expected to result from the bidding. Collusion under study occurs among bidders who are opposed to competing, either for:

• make the bidding process fail ; or

• obtain premiums .

 

What is collusion?

Collusion is that practice that occurs when there are several rival entities in the same market, they decide - instead of competing - to agree on some of the competition variables (such as price ). This seeks to exercise market power for the benefit of cartel members and to the detriment of other market agents , such as consumers . Collusive agreements can be, among others, about:

a) the price of a good or service,

b) the quantity of goods to be produced or services to be provided,

c) a distribution of geographical areas ; or

d) a distribution of customers . Collusion is the most serious attack against competition in the markets . That is why this conduct can be sanctioned with fines for tax benefits of up to 30,000 UTA, while the other infractions of free competition are sanctioned with fines for tax benefits of up to 20,000 UTA.

 

What are the behaviors contrary to free competition in Chile?

We already bear in mind that conduct contrary to free competition is not exhaustively defined, that is, there is no complete list of prohibited conduct. Our legislator chose to use broad descriptions of threatening conduct and point to specific examples of behavior that he considers harmful to competition in the markets. Next, we will analyze some anti-competitive behaviors that we have considered relevant for the construction sector. We are already aware that it will necessarily be necessary to examine the particular circumstances of the case in question to determine whether or not the practice violates free competition in the market in question.

It should be noted that, as mentioned, the bill entered into Congress in March 2015 does not establish differences regarding the amounts of the fines to be applied in the event of collusions or other types of anti-competitive illicit. The foregoing also applies, mutatis mutandis, to abuse of a dominant position. Indeed, it is not ruled out that one or more bidders of a bidding process, or even the bidder, has a dominant position and abuses it during said bidding process.

a) covert postures. Covert positions are offers made to simulate competition and, therefore, to conceal the existence of the cartel . Thus, for example, the members of the cartel agree to present - in addition to the previously agreed winner's offer - other offers with higher prices , in order to simulate competition. A covert offer may also be made by submitting an offer that does not intentionally meet the technical or other requirements set forth in the bidding conditions .

b) suppression or withdrawal of positions. The suppression or withdrawal of bids implies agreements between the colluded competitors aimed at preventing one or more companies from submitting offers or withdrawing offers already submitted , in both cases, so that the winner (previously agreed by the members of the cartel) is the one chosen by the bidder.

c) rotation of the winner. In the winner's rotation systems, the companies that participate in the anti-competitive pact present bids in all the bidding processes but have previously agreed which will be the winner in each of those processes. In other words, they agree to rotate the best proposal and, therefore, rotate the winner's position.

d) market or customer distribution agreements. Competitors divide the market or clients and, for this, they agree not to present offers (or they will only present covert positions) with respect to certain geographic areas or clients, which is not really confronting them.

e) contracts between bidders. It is also common for bidders colluded in bidding processes to enter into contracts with each other in order to share the surcharge obtained. Thus, for example, if the collusion were between two bidders , the previously agreed winner could subcontract part of the execution of the awarded contract to the non-awarded bidder. This, in order to transfer through this subcontract the surcharge that both unlawfully agreed to obtain from the bidder.

Collusion in biddings carried out to make the bidding process fail In this case, the bidders or participants of a bidding process collude to make the bidding process fail , since it is not convenient, for example, because it forces them to compete for a certain market or niche, in which - until before the process - there is no competition . Bidders can achieve their goal of failing the process either by agreeing not to bid or by agreeing to bid with higher than market positions . This, in order to try that the bidder does not prosper in his desire to competitively acquire products or services via tender . This behavior, even though it may not generate immediate monetary returns to its coordinators, has been prosecuted and sanctioned both in Chile and abroad.

 

Collusion in tenders to obtain premiums:

In this case, the bidders or participants in a bidding process collude in order to obtain a surcharge, to the detriment of the bidder . For this, the bidders collude agree on who will be the winner of the bidding process and in the way in which the benefits that the concerted action will report will be distributed. In addition, it is common for colluded bidders to organize themselves for the execution of conducts designed to hide their anti-competitive actions , so that it is not discovered by the bidder. There are numerous formulas for carrying out these practices , which are not mutually exclusive. These include:

a) covert postures;

b) the suppression or withdrawal of positions;

c) rotation of the winner;

d) the distribution of markets or clients;

e) contracts between bidders.

 

Notwithstanding the foregoing, exclusive distribution agreements could become detrimental to free competition , for example, if the grantor is a company with market power that manages -by means of said agreements- to maintain and exploit said position.

 

Exclusivity agreements or incentives?

An exclusivity agreement could occur when a company requests one or more of its customers to market its products only (and not those of its competitors). An example will serve to illustrate this situation and distinguish it from the exclusive distribution agreements discussed in the immediately preceding section. Let's imagine that there is a company that produces about 80% of the yogurts in a certain country. If that yogurt- producing company required the largest supermarket chain in that same country to market the yogurts it produces solely and exclusively, we would clearly find ourselves facing a questionable exclusivity agreement in light of the regulations. It should be noted that the same effect, more covertly, could be achieved if that yogurt maker offered the supermarket chain retroactive discounts or other kinds of incentives for achieving goals that ensure its dominance in the market. The FNE has doggedly persecuted this type of attack against free competition and, especially, when it falls under public supply tenders .

 

What is resale pricing?

Unlike cartels , resale pricing is a practice that does not operate between competitors, but between two companies that have a seller-buyer relationship within the production chain . Through this practice, for example, a manufacturer may set the price at which he will sell the products he supplies to his distributors, thus preventing these distributors from determining the sale price of the same. It should be noted that resale pricing is not always harmful to competition and, therefore, its effects must be analyzed on a case-by-case basis.

 

What are exclusive distribution agreements?

Exclusive distribution agreements occur, for example, when a manufacturer designates a single company as its distributor in a certain country or territory. It could also occur in the event that a manufacturer decides, for example, to market its products solely and exclusively through a large multi-store . Exclusive distribution agreements (not to be confused with the exclusivity agreements or incentives that we will see below) constitute a habitual and generally positive practice, since they allow manufacturers to efficiently ensure that their products have, for example, an adequate display or with good after sale service.

 

What are tied contracts?

Through this practice, a certain market agent conditions the conclusion of a contract to the acceptance of supplementary benefits , which are not related to the conclusion of the contract . This practice would occur, for example, if an automobile manufacturer forces its dealers to purchase all the models of cars it manufactures or when that same manufacturer forces its dealers to also market the motorcycles it manufactures. This practice could also occur in the event that the car manufacturer in question requires its dealers to make the sale on credit of cars only with a certain financial entity.

 

What are predatory prices?

The practice of predatory pricing is one in which an offeror markets his products or services at below cost , in order to prevent the entry of new competitors or to eliminate an existing one. Once the competition is eliminated, the company that practiced the predatory practice will be in a position to increase its prices and recover the losses incurred to eliminate the competition .

 

What is price discrimination?

Price discrimination is the practice whereby a seller charges different prices to different customers or groups of customers, without there being any cost or other reasons that justify the inequality. The purpose of this practice, in general, is to obtain from each customer the highest price that he is willing to pay, thereby increasing the profits received by the seller. It is relevant to highlight that not all price discrimination is illegitimate . Obviously, discounts granted for the quantity of products or services purchased or for other similar reasons are perfectly legal.

 

What is defamation of facts or false claims?

This practice would occur, for example, when a company spreads in the market that the products marketed by a competitor are of poor quality, without being effective.

 

What are fallacious comparisons of goods or services?

This practice is configured when comparing own or third-party products with those of third parties, based on a non-truthful and demonstrable background.

 

Induction to breach of contract with competitors?

This practice would occur, for example, when a company tries to persuade a competitor's suppliers to breach their contractual duties with the latter.

 

Abusive exercise of legal actions?

This practice would be configured, for example, when a company constantly demands a competitor in order to hinder the development of its commercial activity.

 

Imposition of contracting conditions?

It occurs when a company imposes on itself to a supplier contracting conditions based on which said supplier has offered to competitors of the first, in order to obtain better conditions than said competitors. It would also happen when a company imposes on a supplier the contracting conditions that said supplier must give to the competitors of the first company.

 

Unfair terms?

This practice is configured when abusive clauses or abusive conditions are established at the expense of suppliers or the systematic breach of contractual obligations contracted with them. The examination, as in all other behaviors, must be carried out on a case-by-case basis. Notwithstanding the foregoing, to be punishable, price discrimination must be arbitrary , whoever exercises it must have a dominant position in the market in question and, in addition, must be able to prevent buyers from selling the products sold to each other at different prices.

 

Refusal to hire?

This practice usually occurs when whoever owns an indispensable or essential asset of the production process , denies its use to its competitors, in order to prevent or eliminate competition . This would occur, for example, in the case that two competing mining companies export through the same port and that one of them - after acquiring ownership of that essential asset - denies access to it to its competitor or charges abusive fees for its use. As in other practices, the determination of whether or not the conduct in question constitutes a refusal to contract must be analyzed based on the circumstances of the specific case.

 

What are the acts of unfair competition in Chile?

Unfair competition is any conduct contrary to good faith or good customs that, by illegitimate means, seeks to divert customers from a market agent. According to the definition just cited, there are numerous unfair competition practices that market agents can deploy, the only relevant being that they aim to divert customers by illegitimate and contrary to good faith means . Examples of this kind of practice are the following:

 

a) Abuse of the reputation of others: it occurs when, for example, a company uses logos or badges very similar to those of another more renowned company, in order to confuse customers and thereby increase sales. As is known, union associations are organizations established with the aim of promoting the rationalization, development and protection of activities that are common to their members. The union associations make important contributions not only for their members but also for consumers and for the market in general, which encourages and favors competition in the markets . However, even when the trade unions undoubtedly grant significant benefits to the development of the markets, it should be borne in mind that they group competing firms, granting a communication instance that, if misused, could generate risks of anti-competitive behavior . In response to the aforementioned, the FNE through the guide " Trade Union Associations and Free Competition ", has established and made known to the trade associations and their partners a series of actions or practices potentially risky for free competition . Following the same guidelines and guidelines of the FNE on these matters, we will now analyze in a simplified form the eleven actions or practices potentially risky for free competition that the FNE has developed in its guide.

 

What is collaboration between competitors?

Collaboration between competitors can bring benefits for society and for the industry in question. Now, of course, such collaboration carries with it a risk of coordination between competitors that could lead to anti-competitive effects.

 

Union associations and free competition?

As is known, union associations are organizations established with the aim of promoting the rationalization, development and protection of activities that are common to their members. The union associations make important contributions not only for their members but also for consumers and for the market in general, which encourages and favors competition in the markets . However, even when the trade unions undoubtedly grant significant benefits to the development of the markets , it should be borne in mind that they group competing firms, granting a communication instance that, if misused, could generate risks of anti-competitive behavior . In response to the aforementioned, the FNE through the guide " Trade Union Associations and Free Competition ", has established and made known to the trade associations and their partners a series of actions or practices potentially risky for free competition . Following the same guidelines and guidelines of the FNE on these matters, we will now analyze in a simplified form the eleven actions or practices potentially risky for free competition that the FNE has developed in its guide.

 

Information exchanges?

The collection of information from the industry and its subsequent dissemination among its associates, constitutes one of the characteristic tasks of union associations . Such exchange of information carried out by trade associations can be beneficial for the markets since these, in general, work more efficiently when there is more information available to their participants. Notwithstanding the foregoing, there could be negative consequences for the competition of said information exchange, for example, if the exchange is about relevant information, such as that which - if known to competitors - would influence their market decisions. In general, relevant information among competitors will be considered, among others, price policies, cost structures, production volumes, expansion plans , market shares and the content of the proposals in bidding processes . The concept of relevant information must also be examined taking into account the characteristics of each market and the nature of the information exchanged. Thus, for example, the exchange of relevant information will be more risky in a market with few competitors (oligopolistic) and with significant entry barriers than in a highly fragmented one, since, in the first case, the exchange of relevant information could effectively reduce the uncertainty about rivals' competitive responses. Logically, the exchange of information will be less risky if measures such as those listed below are followed: - Collect and / or maintain historical market information (as opposed to current or possible projections). - Dissemination of aggregate information, that is, without allowing agents, specific geographical areas or market lines to be individualized. - Carry out the collection of information from associates on a voluntary basis, that is, without pressure or sanctions on members who do not wish to provide information; and - Outsource the collection and processing of information or carry it out through separate departments. Recommendations to associates: The trade associations , in their role of promoting business activity , can give recommendations (of voluntary affiliation) to their associates in relation to certain matters. Having clarified the foregoing, it is important to highlight that those recommendations should not deal with commercial variables such as, for example, the price or quantity of goods to be produced, since this could alter the independent behavior that their associates must follow in relation to those kinds of subjects. This being the case, it is advisable that when union associations make recommendations to their members, they are: - of voluntary membership; - do not refer to prices, quantities or commercial policies; and - there are no actions or sanctions against associates who decide not to adopt them.

 

Boycott and Free Competition?

Boycotts that concertedly exclude or purport to exclude current or potential competitors constitute an offensive practice against free competition . The union associations must, therefore, refrain from suggesting or carrying out this type of practice. When the boycott is carried out against clients or suppliers so that the trade union association or its members impose or reinforce their commercial terms , the anti - competitive nature of the act and the specific characteristics of the market in question (market shares, existence of barriers or entry conditions, nature of the product, etc.) in order to determine whether or not it is an anti-competitive offense .

 

Participation in meetings?

Union associations give their associates the opportunity to meet periodically to examine topics of interest between competing companies. The aforementioned constitutes a permanent risk of misuse of said instances by partners, for example, directly exchanging relevant information that allows concerted practices to be carried out. In view of the foregoing, among other measures, it is recommended: • to have precise and defined tables of the topics to be discussed at the meetings, in order to avoid being an open forum where relevant information is discussed; • avoid exclusion or discrimination of associates at meetings; • have personnel specialized in matters of free competition who previously review the tables and the presentations or documents that are made or exchanged at the meetings; • It may also be advisable to record the meetings (especially in cases where specialized advisers who ensure compliance with the free competition regulations do not participate); • draw up complete minutes of the meetings and not only of the main topics covered in them; • keep attendance lists ; and • apply the same principles to virtual meetings as to face-to-face meetings.

 

Affiliation criteria and conditions?

In many occasions being part of a trade union is a form of signage that grants a type of recognition or certification in favor of the member. On other occasions, being a member of a trade union association gives members certain benefits. On the other hand, as is to be expected, the union associations establish certain entry criteria for their associates and grounds for their expulsion. Now, in order to avoid that the entry or permanence requirements in a certain union association constitute entry barriers that restrict competition, it is recommended: • to establish affiliation criteria based on the legitimate objectives of the union association; • Have objective and transparent criteria for both affiliation and expulsion that apply to all potential stakeholders; • Verify that the membership requirements are sustainable over time so that there are no substantially different criteria with respect to current and potential members; and • Ensure that membership requirements are not unreasonably restrictive.

 

Provision of services to nonaffiliates?

Union associations commonly provide their members with services such as courses, accreditation programs, statistical information, seminars, etc. These services, sometimes, are exclusively for their associates or with preferential rates for them. This is not, a priori, contrary to free competition but could become so if the products or services provided by the trade union association are essential for competition and the association denies access to them or makes excessive charges to those who are not members. Self-regulation: There are union associations that contribute to the development of self-regulation in the industry . To do this, they issue rules of behavior or internal codes that their members must follow, establishing sanctions in the case of their violation. Self-regulation is in principle beneficial for the markets and for the different agents that participate in it. Nevertheless, it is important that trade associations ensure that the design and application of their regulations is not anti-competitive . This would occur, for example, if the regulations contained price policy impositions or generated unfounded or arbitrary barriers to entry into the market.

 

Setting technical standards?

It is common for union associations to develop technical standards that must be met by industry products or services . The above is, in most cases, beneficial to the market since it contributes to lower search and transaction costs .

 

Standard contracts?

In the support provided by trade associations to their members, they may formulate standard contracting conditions or standard contracts . This is generally beneficial for the markets since the contractual terms are simplified and the contracting conditions are clarified. Notwithstanding the aforementioned, trade union associations cannot impose contracting conditions or standard contracts on their members. An imposition of this kind could affect competition given that associates would be prevented from adopting different and independent commercial conditions if they deemed it necessary. Notwithstanding the foregoing, the establishment of standards could be misused in order for a firm (or a certain technology owned by a group of firms) to retain or obtain market power , which has negative effects for consumers . To avoid the above, it is recommended that the trade union associations establish technical standards and norms based on objective elements and that they should never be used as a means to restrict the offer of certain products or services. Furthermore, if there are certification programs for compliance with technical standards developed exclusively by the trade union association, their membership must be voluntary and the participation of non-affiliated companies may not be discriminated against.

 

Advertising?

The union associations can organize and carry out joint advertising campaigns for their associates in order to promote the economic activity that their members carry out. Such joint advertising does not in principle affect free competition , but could do so in the event that: • restrictions or prohibitions are imposed on the associates to develop their own advertising; or • joint advertising is used as a means of anticompetitive coordination (establishing, for example, price recommendations or other commercial conditions ).

Wolfenson Abogados provides legal advice specialized in competition law, with lawyers specialized in free competition.

Links of interest on Free Competition Law :

1.- Decree Law No. 211 That Sets Rules On The Defense Of Free Competition

2.- National Economic Prosecutor's Office

3.- Court of Defense of Free Competition

Wolfenson Lawyers. Chile Law Firm.

If you need more information and legal advice regarding free competition and its legal regulation, we invite you to contact our lawyers in Santiago. We are located at Avenida Apoquindo 2930 in the commune of Las Condes, Santiago de Chile.

Wolfenson
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Av. Apoquindo 2930 Las Condes, Santiago.
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