Effectiveness of Antitrust Law - Severe or Effective Penalties? The Convenience of Re-Establishes the Penalty of Imprisonment for Infractions to the Competition Law

Abstract

As a consequence of the big scandal in Chile last year, generated by the alleged price collusion of the three main retail pharmacy chains, the discussion began in the Chilean Congress of a Bill Project – fostered by the government of the former President Michelle Bachelet – which aims at re-establishing the penalty of imprisonment of market agents for violating the competition law. Regarding this proposed law, it is highly important for the antitrust regulation system questioning what is the better way to deterrence conducts against free competition, more severe penalties but with less probability of being applied or less severe penalties with higher probability of being executed? We try to answer this question through the following analysis.