Chile prosecutor files antitrust case against Larraín Vial, Consorcio Financiero

Chile's economic prosecutor's office FNE has filed a case before antitrust regulator TDLC regarding horizontal interlocking allegations against Larraín Vial SpA, Consorcio Financiero SA and Juan Hurtado Vicuña, who was a director in both companies.

Horizontal interlocking pertains to the involvement of a director or executive in two or more rival companies simultaneously.

Consorcio Financiero and Larraín Vial both compete in securities brokerage services, according to the FNE. The prosecutor added that Hurtado was a director in both companies before the ban was implemented in February 2017 and resigned as a director at Larraín Vial in April 2019.

The FNE asks the antitrust body to fine Hurtado $162 million for tax benefits and also recommends penalties amounting to about $1.29 billion and $1.85 billion for Consorcio Financiero and Larraín Vial, respectively.

In response, Larraín Vial said in a statement that it "participates in the markets in full compliance with the free competition regulations and has not incurred in any type of infringement, which it will demonstrate in the pertinent instances." It added that it has actively cooperated with the FNE by providing necessary information for the investigation.

During his time at Larraín Vial, Hurtado performed only managerial tasks in the holding company without participating or interfering in the businesses of its subsidiaries, the company said. He did not serve as a director or an executive in Larraín Vial's subsidiaries, the company added.

The FNE filed its first interlocking case last week against Hernán Büchi, Banco de Chile, Falabella SA and Consorcio.