Chile’s Competition Tribunal (Tribunal de Defensa de la Libre Competencia, TDLC) has issued its first ruling on an interlocking case, imposing fines exceeding CLP 2.5 billion (USD 2.55 million) on businessman Juan Hurtado Vicuña, Consorcio Financiero, and Larraín Vial.
The decision stems from a complaint filed by the National Economic Prosecutor’s Office (Fiscalía Nacional Económica, FNE) in December 2021, alleging violations of Article 3(d) of Decree Law No. 211, which prohibits simultaneous participation of the same director or key executive in two or more competing companies.
The TDLC found that the National Economic Prosecutor’s Office constituted a per se infringement, meaning it is deemed illegal without the need to demonstrate anti-competitive effects in the market. The tribunal ordered the payment of fines as follows: CLP 65 million (USD 66,300) by Juan Hurtado, CLP 974 million (USD 994,900) by Consorcio Financiero, and CLP 1.602 billion (USD 1.63 million) by Larraín Vial.
The FNE welcomed the decision, emphasizing that this is the first judicial interpretation of the interlocking prohibition introduced in the 2016 amendment to DL 211. National Economic Prosecutor Jorge Grunberg noted that the ruling confirms the serious competitive risks posed by interlocking, stating that merely establishing simultaneous participation is sufficient for legal sanctions—proof of market harm is not required.
“The Competition Tribunal has been unequivocal about the seriousness of interlocking and its absolute prohibition, even when it occurs through parent companies of operational firms within the same market,” said Grunberg. “The ruling also makes clear that both individuals and the companies involved are jointly responsible for the violation.”
The case confirmed that Hurtado held simultaneous board positions at Consorcio and Larraín Vial, two firms competing in securities brokerage and related financial services. This overlap occurred during the transitional period granted by law following the enactment of the interlocking ban in February 2017 and continued until Hurtado’s resignation from Larraín Vial’s board in April 2019.
According to the TDLC’s judgment, “Juan Hurtado, in his capacity as a director and by virtue of the legal powers and duties of that role, was in a position to access commercially sensitive information from both competing firms, including financial status, strategic plans, and competitive behavior. His participation posed a threat to free competition.”
The FNE’s case was based on an investigation initiated ex officio by its Enforcement Division, using advanced technological tools to detect connections between competitors through shared ownership or directorships.
Prosecutor Grunberg also affirmed that the FNE continues to actively monitor potential interlocking situations, particularly in companies with annual revenues exceeding UF 100,000 in the calendar year preceding the alleged infringement.
