The National Economic Prosecutor's Office of Chile reported that both companies agreed to assign areas or market shares, deciding not to compete for clients that each one already supplied.
The National Economic Prosecutor's Office (FNE) accused collusion between the companies Indura and Linde Gas Chile, this in the industrial, medicinal and special gases market. Everything would have occurred at least between November 2019 and January 2021, in a story that includes “peace and love” and compensated denunciation.
According to a statement from the organization, there are three executives of these companies involved in the accusation. These are the general managers of both companies, plus a senior official from Linde.
In a request presented on April 29 before the Court for the Defense of Free Competition (TDLC), the FNE denounced that Indura and Linde agreed to assign areas or market shares, determining not to compete for clients that each one already supplied.
“This collusion affected industrial and medicinal clients, covering a wide range of sectors, such as metallurgical, paper, forestry, construction, aquaculture, food, laboratories, mining, oil refinery, steel, glass and hospitals, among others,” he noted. the FNE.
How the research was born
The investigation was born thanks to a complaint, through which authorization was obtained to intercept telephone lines of those involved, which later made it possible to raid their private homes, "disrupting a cartel that was in full execution."
According to the information provided by the FNE, the agreement began after a meeting between both general managers in November 2019, which took place in a cafe in Las Condes.
“Indura and Linde began to forge an understanding that allowed them to finally share their clients, through a 'gentlemen's agreement' or 'non-aggression' pact. The FNE reports that, in an intercepted telephone call, the executives of one of the companies referred to this agreement as a situation of 'peace and love' between Indura and Linde," the organization explained.
To comply with the agreement, companies refrained from participating in tenders or quotes, they also offered high prices so as not to be awarded or they withdrew from processes if the client was also interested. Finally, they still withdrew offers if they were chosen.
As the investigation progressed, Linde and his executives approached the FNE to acknowledge their participation and provide the background information they had, in order to access the compensated denunciation.
Fines of US$31 million
For this reason, the FNE requested fines for tax benefits for a total of 37,999 Annual Tax Units (UTA), which is equivalent to US$ 31.3 million.
Of this total, US$31.2 million correspond to Indura and US$114,392 to its general manager.
However, Linde and its executives were asked to exempt them from fines for complying with the requirements to access compensated denouncement.
“In line with the above, the FNE also asked the Court to declare the exemption from criminal liability for the illicit acts with respect to the former Linde executives covered by said program,” the agency added.
The national economic prosecutor, Jorge Grunberg, indicated in the aforementioned statement that “the products affected by this collusion are extremely relevant to the functioning of multiple areas of our economy and the health of people. “This is a very important case for the FNE, in which we urge that exemplary sanctions be imposed.”
“Almost 20 years ago the FNE accused a cartel in this same market, but the companies were acquitted because there was no direct proof of the agreement. We were then empowered to intercept communications, access telephone records, conduct searches and seizures, and administer the whistleblower program. And today the FNE can affirm with satisfaction that it disrupted a cartel in full operation, using each and every one of the tools that the legislator entrusted to it,” he added.
