Chile: Tissue Paper Case revived by SCA appeal

Sources close to the important collusion case in the tissue paper market in Chile and other South American countries known as Caso Tissue, have said that the case will be revived in coming days, as the Third Chamber of the Supreme Court will set a hearing to review the case.

The hearing will focus on the rulings by the Tribunal for the Defense of Free Competition, questioned after Swedish paper company SCA appealed against the fine of US$18 million imposed by the court. SCA states that the other accused company, CMPC de Chile, had coerced SCA’s predecessor to join the price fixing cartel, had not therefore complied with the leniency program offered by the TDLC. Therefore, SCA argues, it should recover the position of ‘first complainant’, making itself entitled to a greater reduction of the fines.

CMPC and SCA Chile would have agreed to raise prices and keep their market shares stable in the toilet paper business, in addition to agreeing on the positioning of commercial products, including toilet paper, paper towels, napkins, disposable handkerchiefs and facial tissues. Both companies requested the leniency benefit, with CMPC being the first to blow the whistle on itself.