Ten years of monopoly, exposed in one day: Chile's king crab industry faces its most severe anti-monopoly investigation
Published 2025년 10월 3일
Tridge summary
According to the allegations, the seven companies involved include Elaboradora de Alimentos Porvenir, International Seafood, Pesquera Cabo Froward, Productos Marinos Puerto Williams, Proyecta Corp, Sociedad Pesquera Bahia Chilota, and Bakkavor. The Chilean National Economic Prosecutor's Office (FNE) detailed in a complaint submitted to the Tribunal for the Defense of Free Competition (TDLC) that these companies and their executives participated in a monopoly alliance from 2012 to 2021.
The FNE requested that the court impose a fine of approximately 51.9 billion Chilean pesos (about $54 million) on the companies involved, and an additional fine of about 424 million Chilean pesos on the executives.
Secret Operations: The Monopoly Alliance Controls the Market
The complaint revealed the operating mode of this monopoly alliance. The FNE pointed out that from 2017 to 2021, these companies acquired 81% to 88% of the total live Chilean king crab caught by artisanal fishermen in the Magallanes region, thus dominating the market.
The allegations claim that the parties involved coordinated their actions through face-to-face meetings, telephone calls, emails, and WhatsApp messages, exchanging sensitive purchasing price information. Their collusive behavior was not only reflected in setting the purchase price together at the beginning of each fishing season (from July to November each year), but also throughout the fishing period, jointly delaying or suppressing any price increases.
The FNE emphasized in the complaint that this repeated exchange of information "effectively replaced competition with coordination," allowing the companies to act collectively, suppressing prices that should have been higher in a competitive market. The prosecution stated that the main victims of this behavior were the local artisanal fishermen, who received lower income over the years than they should have in a fair market environment.
Investigation Breakthrough: Internal Whistleblower and Leniency
The breakthrough in this investigation came in July 2020 when the FNE received a tip from a whistleblower revealing the existence of the monopoly alliance. After obtaining judicial authorization, the FNE used telephone surveillance, raids, and document review as investigative methods.
The key development in the case occurred in February 2021 when the company Bakkavor and three of its executives admitted to participating in the monopolistic behavior and provided substantial cooperation and evidence to the FNE, thus obtaining leniency. The prosecution stated that their cooperation was crucial in clarifying the details of the companies' coordinated pricing and mutual monitoring.
During the investigation, a large amount of internal emails, chat records, call logs, and witness testimonies were found. The FNE pointed out that much of the evidence showed that company executives explicitly discussed competitors' prices and agreed on strategies to collectively "hold the price line" and avoid competing with each other.
Jorge Greemberg, the Chilean National Economic Prosecutor, issued a statement on the case, saying: "Through this action, we have reaffirmed our commitment to pursuing all monopolistic behavior and punishing it according to the law..."
The FNE requested that the court impose a fine of approximately 51.9 billion Chilean pesos (about $54 million) on the companies involved, and an additional fine of about 424 million Chilean pesos on the executives.
Secret Operations: The Monopoly Alliance Controls the Market
The complaint revealed the operating mode of this monopoly alliance. The FNE pointed out that from 2017 to 2021, these companies acquired 81% to 88% of the total live Chilean king crab caught by artisanal fishermen in the Magallanes region, thus dominating the market.
The allegations claim that the parties involved coordinated their actions through face-to-face meetings, telephone calls, emails, and WhatsApp messages, exchanging sensitive purchasing price information. Their collusive behavior was not only reflected in setting the purchase price together at the beginning of each fishing season (from July to November each year), but also throughout the fishing period, jointly delaying or suppressing any price increases.
The FNE emphasized in the complaint that this repeated exchange of information "effectively replaced competition with coordination," allowing the companies to act collectively, suppressing prices that should have been higher in a competitive market. The prosecution stated that the main victims of this behavior were the local artisanal fishermen, who received lower income over the years than they should have in a fair market environment.
Investigation Breakthrough: Internal Whistleblower and Leniency
The breakthrough in this investigation came in July 2020 when the FNE received a tip from a whistleblower revealing the existence of the monopoly alliance. After obtaining judicial authorization, the FNE used telephone surveillance, raids, and document review as investigative methods.
The key development in the case occurred in February 2021 when the company Bakkavor and three of its executives admitted to participating in the monopolistic behavior and provided substantial cooperation and evidence to the FNE, thus obtaining leniency. The prosecution stated that their cooperation was crucial in clarifying the details of the companies' coordinated pricing and mutual monitoring.
During the investigation, a large amount of internal emails, chat records, call logs, and witness testimonies were found. The FNE pointed out that much of the evidence showed that company executives explicitly discussed competitors' prices and agreed on strategies to collectively "hold the price line" and avoid competing with each other.
Jorge Greemberg, the Chilean National Economic Prosecutor, issued a statement on the case, saying: "Through this action, we have reaffirmed our commitment to pursuing all monopolistic behavior and punishing it according to the law..."
Original content
According to the allegations, the seven companies involved include Elaboradora de Alimentos Porvenir, International Seafood, Pesquera Cabo Froward, Productos Marinos Puerto Williams, Proyecta Corp, Sociedad Pesquera Bahia Chilota, and Bakkavor. The Chilean National Economic Prosecutor's Office (FNE) detailed in a complaint submitted to the Free Competition Defense Tribunal (TDLC) that these companies and their executives participated in a monopoly alliance from 2012 to 2021. The FNE requested that the court impose a total fine of approximately 51.9 billion Chilean pesos (about $54 million) on the implicated companies, and an additional fine of about 424 million Chilean pesos on the relevant executives. Secret Operations: The Monopoly Alliance Controls the Market The indictment revealed the operating mode of this monopoly alliance. The FNE pointed out that from 2017 to 2021, these companies acquired 81% to 88% of the total live Chilean king crab caught by artisanal fishermen in the ...
Source: Foodmate
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