The Competition Tribunal partially accepted a lawsuit by the National Economic Prosecutor’s Office against Cencosud S.A., in ordering the latter to consult the Tribunal, as described in article 31 of Decree Law 211, before any concentration operation in the supermarket industry in which Cencosud intervenes, directly or indirectly, in the terms of Article 100 of Law N° 18045.
The ruling considered the growing concentration of the markets in which the plaintiff operates, the noticeable barriers to entry, Cencosud’s position in those markets, and the adverse effects in competition that the plaintiff’s acquisition of competitors tend to produce. The Tribunal determined that the growth strategies of the plaintiff, based on overtaking rival companies, in some cases tends to significantly restrict or hinder free competition, in the terms of article 3 of Decree Law 211.
Because of this, and given that the potential effects on free competition that any given concentration operation can cause must be analyzed on a case by case basis, taking into account the peculiar characteristics of the involved companies and the affected local markets, the Tribunal ruled that Cencosud must consult of any acquisition or overtaking in the supermarket industry, prior to its materialization.