Santiago, June 9, 2025 — The Chilean Supreme Court has upheld a USD 2.6 million fine against a Disney Group subsidiary for submitting misleading information during the notification process of its 2018 merger with 21st Century Fox. The ruling confirms a February 2024 decision by the country’s Competition Tribunal (TDLC), marking a precedent-setting moment for merger control enforcement in Chile.
The court found that TWDC Enterprises 18 Corp., the Disney entity involved, failed to fully comply with its disclosure obligations during the transaction’s review by Chile’s National Economic Prosecutor’s Office (FNE). Specifically, Disney claimed it did not possess certain documents required by law. It later admitted to holding two such documents, while the FNE ultimately identified at least 29 relevant files that had been withheld during the merger notification process.
In its decision, the Supreme Court stated that “when responding to the FNE’s requests for information and seeking a waiver of documentation requirements, TWDC claimed not to possess documents that were, in fact, in its possession.” The Court concluded that this conduct obstructed the FNE’s ability to properly investigate and assess the merger, constituting a breach of Chilean competition law.
The ruling emphasized that Disney’s actions stemmed from either a deliberate reluctance or, at minimum, negligent behavior in cooperating with the administrative process, thereby compromising the integrity of the merger control system.
Felipe Cerda, Acting National Economic Prosecutor, welcomed the decision, calling it “a key milestone for the effective functioning of the merger control system entrusted to the FNE by law.” Cerda stressed that the regime relies on collaboration and transparency from notifying parties. “The system is not designed for gradual, piecemeal information gathering,” he said, “but rather for full disclosure from the outset to allow for timely and accurate assessment of competition risks.”
This is the first time Chile’s Supreme Court has ruled on a case involving misleading conduct during a merger notification, reinforcing the FNE’s authority and the legal obligations of notifying parties.
Disney has previously faced scrutiny from the FNE related to its acquisition of Fox. In 2021, the company reached a separate settlement with the authority after failing to comply with one of the behavioral remedies imposed as a condition of the merger’s approval. That settlement included a USD 240,000 payment and an admission that Disney had not properly informed Chilean pay-TV distributors about the agreed commitments.
The Supreme Court’s ruling underscores the growing scrutiny of multinational mergers in Chile and sends a clear warning that inaccurate or incomplete disclosures will not be tolerated in the country’s competition review process.
