The National Economic Prosecutor's Office (FNE) formally requested the Competition Tribunal (TDLC) to sanction the companies.

Chilean Aquaculture Rocked: FNE Seeks Record Fines for Millionaire Salmon Feed Collusion

CHILE
Tuesday, July 08, 2025, 00:10 (GMT + 9)

Chile's National Economic Prosecutor's Office (FNE) accuses Biomar, Skretting, and Salmofood of manipulating prices for 12 years, requesting historical sanctions of over US$ 79 million after verifying illegal coordination that impacted a key sector input.

SANTIAGO – A new chapter is unfolding in Chile's history of collusion, this time affecting one of its economic pillars: aquaculture. On July 1st, the National Economic Prosecutor's Office (FNE) formally requested the Tribunal for the Defense of Free Competition (TDLC) to impose maximum fines against three giants in salmon feed production: Biomar, Skretting, and Salmofood. They are accused of orchestrating an anti-competitive agreement that distorted sector prices for over a decade, between 2003 and 2015.

According to the FNE, this cartel not only harmed producers and consumers by manipulating a key input for national aquaculture but also significantly impacted the salmon industry, which is vital to the Chilean economy. Eduardo Aguilera, deputy head of the FNE's Litigation Division, presented "abundant evidence" to the TDLC detailing the collusive behavior of the companies.

The investigation revealed a systematic and deliberate scheme. Initially, coordination focused on feed prices or their adjustments, often through the exchange of price lists. Over time, the manipulation evolved to focus on the cost of raw materials each company reported to its clients. Aguilera emphasized that "there was clear collaboration to fix prices charged to clients."

Crucial evidence supporting the FNE's complaint includes seized emails and declarations obtained through Ewos's leniency program, a collaborating company that provided key information, as well as raids conducted at the companies' offices during the investigation. This inquiry, which concluded in late 2019 with the FNE's filing of a complaint, demonstrated the active participation of high-level executives, including general, commercial, and purchasing managers, in implementing the agreement.

Historic Sanctions and an Affected Sector

Given the extreme gravity and prolonged duration of the cartel, the FNE has asked the TDLC to apply the maximum fines allowed by the law in effect at the time of the offenses to each of the three companies: 30,000 Annual Tax Units (UTA) per company, equivalent to over $24.8 billion Chilean pesos each. In total, the sanctions would amount to $75.5billionChileanpesos(approximatelyUS\$$ 79.8 million), one of the highest figures requested in collusion cases in Chile. "We seek to sanction and deter practices that undermine free competition," Aguilera stated.

This scandal adds to a list of notorious collusion cases in Chile, reigniting the debate about the effectiveness of antitrust regulations. Previous cases like the "Pharmacies Collusion" (2008), the "Paper Collusion" (2000-2011), the "Chicken Collusion" (2011), or the "Diaper Collusion" (2002-2009), and even the investigation into "Oxygen Collusion" during the pandemic, have set precedents.

Consumer organizations and legislators have demanded greater rigor in monitoring and sanctioning these practices, especially in strategic sectors like aquaculture. The TDLC's ruling on the salmon feed producers' collusion, expected in the coming months, could set an important precedent for similar cases. Meanwhile, the companies involved also face civil lawsuits from affected parties.

By pursuing legal action in this area, the FNE "reaffirms its commitment to a more equitable and transparent economy, ensuring that regulatory bodies act firmly against acts that go against the economic and social well-being of the nation," highlights an ICF publication. This case underscores the complexity and temporal scope of cartels, which, according to the Prosecutor's Office, used "sophisticated tactics" and "encrypted communications" to evade detection for over a decade.

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