April 16, 2025 – Santiago, Chile – In a landmark ruling that underscores Chile’s commitment to preserving market competition, the country’s Antitrust Court (Tribunal de Defensa de la Libre Competencia, TDLC) has imposed fines totaling CLP $2.5 billion (approximately USD $2.6 million) on three major entities for violating the legal prohibition against interlocking directorates. This marks the country’s first-ever enforcement action on the issue, following a complaint from the National Economic Prosecutor’s Office (Fiscalía Nacional Económica, FNE).
The fines were levied against Juan Hurtado Vicuña, Consorcio Financiero, and Larraín Vial, all of whom were found to have violated the Competition Act by allowing the same individual to hold key executive or board positions in competing firms. In particular, Mr. Hurtado simultaneously served on the boards of both Consorcio Financiero and Larraín Vial, two leading players in Chile’s securities brokerage market, between 2017 and 2019, well beyond the deadline for compliance with the interlocking prohibition.
The TDLC determined that this interlocking of directorates represented a per se violation of antitrust law—meaning the violation was deemed harmful to competition without needing to demonstrate actual market effects. The Court’s decision is a significant move in Chile’s ongoing efforts to safeguard competitive practices and prevent anti-competitive behavior, particularly in high-stakes financial sectors.
The fines imposed are as follows: USD $1 million for Consorcio Financiero, USD $1.6 million for Larraín Vial, and USD $65,000 for Mr. Juan Hurtado. This ruling sends a strong message to other corporate players in Chile that the government will not tolerate anti-competitive conduct under any circumstances.
National Economic Prosecutor Jorge Grunberg praised the decision, noting, “The Tribunal has clearly affirmed that holding simultaneous positions in competing companies presents a clear and present risk to competition. This ruling sets a critical precedent, confirming that simply demonstrating the existence of interlocking directorates is enough to trigger sanctions.”
The case stems from an investigation initiated by the FNE in December 2021, prompted by concerns over potential violations of the interlocking directorates rule, which was introduced as part of a broader amendment to Chile’s Competition Act in 2016. The prohibition aims to eliminate the risk that shared directors or executives could harm market competition by sharing sensitive commercial information between rival companies.
The TDLC also clarified that interlocking directorates are prohibited not only when individuals serve directly on the boards of competing firms, but also when they hold positions in the parent companies of those firms. This ensures that no competitive advantage or insider information is shared between direct competitors through overlapping leadership structures.
In addition to the financial penalties, the ruling also reinforces the responsibility of both individuals and companies involved in interlocking directorates to comply with Chile’s antitrust laws.
The FNE, utilizing advanced data analytics, has been actively monitoring potential interlocking directorates cases and remains committed to ensuring rigorous enforcement of antitrust regulations. The agency’s use of cutting-edge technology in identifying links between individuals and companies has proven essential in uncovering hidden anti-competitive practices in Chile’s markets.
This ruling is expected to serve as a critical precedent for future cases, emphasizing the importance of maintaining clear boundaries between competitors to foster a fair and competitive market environment.
