The Fiscalía Nacional Económica (FNE), Chile’s competition authority, has filed charges before the Tribunal de Defensa de la Libre Competencia (TDLC) against seven seafood processing companies and eight of their executives for alleged collusion in the purchase of centolla magallánica (Magallanes king crab). The FNE has requested fines exceeding US$54 million.
According to the FNE, the accused companies coordinated prices paid to artisanal fishermen in the Magallanes Region between 2012 and 2021. The alleged scheme involved fixing initial seasonal prices and delaying or limiting subsequent increases, thereby reducing payments to fishermen compared to what they would have received in a competitive market.
The companies named are Elaboradora de Alimentos Porvenir, International Seafood, Pesquera Cabo Froward, Productos Marinos Puerto Williams, Proyecta Corp, Sociedad Pesquera Bahía Chilota, and Bakkavör. Collectively, these firms purchased between 81% and 88% of the region’s live king crab between 2017 and 2021, exporting almost all of it to destinations including China, the United States, and Mexico.
The FNE’s filing states: “By communicating, the companies confirmed, for example, how much their competitors were actually paying — to validate or disprove supplier information — or what their strategy would be in future purchases, thereby neutralizing independence in decision-making and eliminating the uncertainty about rivals’ behavior that should prevail in a competitive environment.”
Evidence and Investigation
The investigation began in July 2020 following a complaint. Authorities employed various legal tools, including phone interceptions and search-and-seizure operations at company offices in Porvenir, Magallanes. In February 2021, Bakkavör and three of its executives applied for leniency, admitting participation in the cartel and providing key evidence. Testimonies from executives of the accused companies further corroborated the existence of coordinated contacts and pricing agreements.
As a result, the FNE is seeking fines totaling 62,406 Unidades Tributarias Anuales (UTA) — approximately US$54 million (CLP 51.8 billion) — against the companies, and 511 UTA (around US$445,000) against the implicated executives.
Official Statement
Jorge Grunberg, Chile’s National Economic Prosecutor, underscored the importance of pursuing antitrust enforcement across all regions: “With this filing, the Fiscalía reaffirms its commitment to act wherever anti-competitive conduct occurs and to prosecute collusion in regional markets with the utmost rigor.”
On the specific case, he stressed the harm caused to local fishing communities: “Although nearly all king crab is exported today, the damage this conduct inflicted on the Chilean market — and especially on artisanal fishermen whose livelihoods depend on this resource — is undeniable.”
Broader Context
The action is part of the FNE’s ongoing strategy to monitor regional markets closely. Earlier this year, the agency brought a similar case against industrial bakers in the Province of Iquique for alleged collusion in the wholesale bread market.
