Chile’s Supreme Court Fines CMPC $15 Million over Collusion Scheme in Tissue

The Chilean Supreme Court revoked a benefit formerly given to CMPC and applied a $15 million fine to the pulp and paper producer over a collusion scheme in the domestic tissue market between the years of 2000 and 2011. A sentence that fined tissue producer SCA Chile in the same amount was maintained.

The judges revoked the benefit obtained by CMPC through an agreement with the National Economic Prosecutor's office, and which had been recognized by the Court of Defense of Free Competition. By the previous agreement, the company could be exempted from the fine after having cooperated with the investigation.

The Court accepted a claim made by SCA. According to the sentence, CMPC “organized the collusion and also coerced and forced SCA Chile to participate in the cartel”.

CMPC issued a statement saying that it denies the existence of coercion. The company added that it reached an agreement with the Chilean Consumer Protection Agency for a compensation that was distributed to about 13 million people. “We have taken substantive measures to prevent situations of this nature from reoccurring, including the strengthening of control systems and permanent training in free competition to all of our people who are part of the company,” CMPC said.

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