CHILE Law and Practice Contributed by: Patrick Humphreys, Daniela Gazmuri Larraín, Paula Lühr, Ian Hinzpeter, Camila Leviante, Beatriz Riveros and José Luis Bravo, Garnham Abogados
ful where they give competitors market power and involve commercial conditions or exclusion of actual or potential competitors. Enforcement and Penalties The FNE investigates cartel conduct and may bring cases before the TDLC, representing the general pub - lic interest. The FNE has broad investigative powers and may also enter out-of-court settlements where appropriate to protect competition. Cartel conduct can lead to fines, orders to amend or terminate unlawful agreements, and restrictions on contracting with the state or obtaining state conces - sions. Individuals may also face criminal penalties. Under the economic crime’s framework, cartel con - duct is classified as a serious economic offence and may lead to imprisonment and disqualification from holding managerial positions. Chile has a leniency programme, known as delación- compensada , which may exempt or reduce sanctions for parties that provide valuable information to the FNE. 6.4 Abuse of Dominant Position DL 211 prohibits the abusive exploitation of a domi - nant position by one or more economic agents. The law does not define dominance through a fixed market share threshold. Instead, dominance is assessed case by case, considering the structure of the market, barri - ers to entry, alternatives available to customers, buyer power and the company’s ability to behave indepen - dently of competitors. The law gives examples of abusive conduct, including fixing purchase or sale prices, tying the sale of one product to another, allocating market areas or quotas, and imposing similar abusive practices. In practice, the analysis focuses on whether the conduct harms the competitive process, not merely whether it dis - advantages a particular competitor or contractual counterparty. Related Exclusionary Conduct Chile also sanctions predatory practices and certain forms of unfair competition where they are carried out with the purpose of reaching, maintaining or increas -
ing a dominant position. Predatory pricing typically involves selling below a relevant cost benchmark to exclude competitors or deter entry, with the expecta - tion of strengthening market power later. Unfair competition is also regulated separately by Law No 20,169 on Unfair Competition. Examples may include misleading advertising or improper use of another company’s reputation. These acts become competition-law concerns when they are linked to the creation or reinforcement of market dominance. Territorial Reach and Economic Dependency Chile does not have a broad standalone economic dependency regime. However, dependency may be relevant where a dominant supplier, customer or plat - form uses its position to exclude competitors or dis - tort competition in a Chilean market. The conduct does not need to occur physically in Chile. Chilean authorities may examine foreign con - duct if it produces, or tends to produce, anti-compet - itive effects in Chile. Companies with strong market positions should therefore document the business justification for exclusivity arrangements, refusals to supply, rebates, tying, pricing policies and distribution restrictions. Patents in Chile protect technical inventions that are new, involve an inventive step, and are capable of industrial application. Protection may cover products, processes, machines, chemical compounds and other technical solutions, but not abstract ideas, discover - ies, business methods, or medical treatment methods as such. The main statute is Law No. 19,039 on Industrial Prop - erty. A patent lasts 20 years from the filing date and is not renewable. In limited cases, additional protection may be available where there has been an unjustified administrative delay. Applications are filed with the Instituto Nacional de Propiedad Industrial (INAPI), Chile’s National Institute 7. Intellectual Property 7.1 Patents
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