Chilean feed firms face price fixing fines

CHILE’S competition regulator Fiscalia Nacional Economica (FNE) has accused the Chilean divisions of BioMar, Skretting and Salmofood of engaging in price fixing between 2003 and 2015, as it presented a case against them at the antitrust court Tribunal de Defensa de la Libre (TDLC).

The FNE has asked the TDLC to issue the maximum fines possible to the three companies, which would add up to a combined total of US$70 million.

The Ewos Group acted as the ‘whistleblower’ in the case, and to reflect this the FNE has requested that the company, now part of Cargill, receive an exemption from the fines.

Ricardo Riesco, the head prosecutor, said that the Ewos ‘confession’ to being part of the cartel was the starting point for the investigation. ‘The FNE requested this fine due to the seriousness and temporary extension of the agreement since the required companies are the only ones that sell salmon food in Chile, so their customers had to pay the cartel prices because they did not have alternative offers.’

Cargill said: ‘We were informed of practices throughout the salmon feed industry in Chile that were inconsistent with Cargill’s competition policy and possibly violated Chile’s competition law.’