Chile: National prosecutor accuses leading retailers of collusion - FreshFruitPortal.com

Chile: National prosecutor accuses leading retailers of collusion

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Chile: National prosecutor accuses leading retailers of collusion

Three of Chile's largest retailers - Cencosud, SMU and Walmart Chile - have been accused of collusion in the poultry market, but it remains to be seen whether there will be implications for the produce sector. Tres cadenas Chile

In a request to the Free Trade Defense Court (TDLC), the National Economic Prosecutor (FNE) called for fines of US$22.9 million each to be applied to the three chains, alleging they fixed minimum sales prices through their suppliers between 2008 and 2011.

The request alleges the retailers prevented fresh chicken sales to go below the wholesale price plus VAT and that coordination took place through suppliers.

In the indictment, FNE argued the chains "knowingly adhered to a common scheme that replaced the risks of competition with practical cooperation between themselves", with an objective to "regulate the market" and "avoid price wars".

At the end of 2011, the three retailers made up 92.5% of the Chilean supermarket sector, with the brands Jumbo and Santa Isabel (Cencosud); Unimarc, Bigger, Mayorista 10, Maxi Ahorro, Alvi, Dipac and Comer (SMU); and Hipermercado Lider, Lider Express, SuperBodega aCuenta and Ekono (Walmart).

The accusation follows on from a collusion scandal of poultry companies rocked Chile in September 2014, and a toilet paper collusion scandal late last year.

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