Parque O’Higgins: FNE Files Collusion Investigation

The FNE resolved, on January 14, 2025, to close the investigation Rol N°2713-22 FNE, related to possible anticompetitive conducts of those indicated by article 3 paragraphs 1 and 2 letter a) of DL 211, in the market of food and beverage services for visitors of the event held at Parque O'Higgins and organized by Corporación Para el Desarrollo de Santiago ("Cordesan"), initiated on August 9, 2023, based on the complaint filed by a private individual on September 15, 2022.

In the complaint, the individual stated that, through a news program broadcast on September 14 of the same year by an open television channel, a restaurant owner of the 2022 national holiday event, held in Parque O’Higgins, indicated that, together with other owners of premises, they had agreed on the prices of certain products.

During the course of the Investigation, the Prosecutor’s Office, among other proceedings, gathered information from Cordesan and the production company in charge of the event, took a statement from the vendor who made the aforementioned statement on television and obtained information from him, and collected prices of the different products offered. In his statement, the tenant denied the existence of an agreement, stating, moreover, that his words had been misinterpreted, since he was referring to the prices at which the “fonderos” could acquire the supplies through a Whatsapp group that had been generated among them, so that the old tenants, who did not participate in the event, could provide them with some products. In relation to the prices, he argued that his only intention was to advertise the event, calling citizens to attend Parque O’Higgins, because they would find attractive prices. Finally, he admitted having done it inappropriately, which he attributed somehow to the spontaneity of the interview.

Subsequently, the Locatario voluntarily provided the FNE’s investigative team with a copy of the Whatsapp chat, in which some fonderos of the event participated, in which there is no evidence of coordination among the fonderos to offer the public the same price in the products sold, but rather, offers of inputs and products to the fonderos by persons outside the event. In addition, there was no evidence of similarity of prices among the fonderos of the event under investigation.

In addition, an aspect that further reduces the probability of a collusive hypothesis among the suppliers of the event’s kitchens is the presence of new vendors, who did not know the “fonderos” from previous versions, which increases the costs of coordination between the parties involved, since they would not have a prior relationship of trust between them.

Finally, the singularities of the market in question, which is characterized by a relevant geographic proximity between suppliers, similar to the one existing in the free fairs, which allows them to carry out a constant and reciprocal monitoring, configuring a market with open information, contribute to all the above mentioned. This type of market can lead to lower price dispersion, without the need for collusion among competitors.

Notwithstanding the foregoing, the FNE urged the tenant to be more careful in the statements it may issue in the future, in order to avoid risky conduct from the point of view of free competition. It should also be noted that it is advisable to avoid the administration of a common chat room among competitors, as this may become an opportunity that may give rise to an agreement or concerted practice contrary to free competition.

In addition, the FNE urged Cordesan to include in the next bidding and contracting processes carried out in the context of the organization of events of the same or similar nature to the one under investigation, in its bidding conditions and in the contracts signed as a result of the process regulated by the same, an express clause that imposes on the participants the obligation to respect free competition both in the bidding process and in the operation of their businesses once the bid is awarded, all in accordance with what is described and regulated in DL 211.