CHILE LAW AND PRACTICE Contributed by: Fernando Lathrop Aubert, Francisco Cárcamo Valdés, Jimena Illanes Diez, Joyce Jankelevich Mayer, Macarena Jaramillo Solís, Michelle Niedbalski Ramírez, Nicolás Maldonado Leyton and María Fernanda Heusser Errázuriz, Lathrop Mujica Herrera & Diez Abogado
imposing conditions to address competition risks, even for completed transactions. If a transaction exceeds the thresholds in Article 48 of the Competition Law, parties must notify the FNE before execution. The process starts with a 30-busi - ness-day review to identify competition risks. If con - cerns arise, the investigation can be extended for up to 90 more days. The FNE can mandate asset divesti - tures and contract adjustments, or prohibit the trans - action if substantial risks are found. Failure to notify does not shield parties from interven - tion. The FNE can act ex officio, analysing whether the transaction undermines competition and may unwind the deal if necessary. Penalties for non-compliance include hefty fines and invalidation of the transaction. The FNE’s decisions can be appealed to the Tribunal de Defensa de la Libre Competencia (TDLC), and even to the Supreme Court if necessary. This ensures a rigorous, multi-layered review process. Chile’s enforcement system combines meticulous technical oversight with robust judicial support, ensur - ing decisions are thorough, equitable and adaptable to market needs. The FNE has also published internal guidelines – such as the Guide on Notification Thresh - olds and the Guide on the Notification Procedure – which contribute to the clarity and consistency of the regime, particularly relevant for foreign investors. 7. Foreign Investment/National Security 7.1 Applicable Regulator and Process Overview Chile has a foreign investment regime under the For - eign Investment Promotion Law, which promotes economic freedom, non-discretionary procedures and non-discrimination rules for foreign investors. Rele - vant authorities include the Chilean Central Bank for foreign exchange operations and the CMF for financial market regulation. Most economic activities are open to foreign investment, but exceptions exist for sensi - tive sectors like border zones, natural resources (eg,
lithium, hydrocarbons), nuclear energy, and maritime cabotage. InvestChile also grants a foreign investor’s certificate. Applications for the certificate take up to 15 working days and can be submitted online. For more details, please see 1.2 Regulatory Frame- work for FDI and 8.1 Other Regimes . 7.2 Criteria for National Security Review Chile does not generally differentiate its foreign invest - ment review criteria, considerations or analyses for partnerships, joint ventures, acquisitions by foreign governments or their affiliates, or non-controlling minority investments, except in specific cases regu - lated by the Foreign Investment Promotion Law. These regulated areas include border zones, hydrocarbons, lithium and other natural resources, where restrictions are clearly defined. FDI may be made in Chile through: • freely convertible foreign currency; • imported physical goods in any form; • reinvested profits or capitalised loans; • technology contributions eligible for capitalisation; and • loans from related companies tied to the foreign investment. These principles uphold economic freedom while maintaining safeguards in strategically important sec - tors. 7.3 Remedies and Commitments Under Chile’s Foreign Investment Promotion Law No 20,848, the regime does not establish a formal foreign investment review process that results in negotiated or imposed remedies such as behavioural or structural commitments. However, certain obligations, condi - tions or reporting duties may arise depending on the nature of the investment and the sector involved, such as the following. Central Bank The Central Bank does not impose discretionary rem - edies but may require compliance with reporting and
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