Legal Dispute Threatens Soprole Subsidiary with $8 Million Fine

Background

Chilean dairy company Chileterra, associated with the Ríos family and New Zealand capital, has filed a lawsuit against Prolesur, a subsidiary of Soprole. The case, presented before the Tribunal de Defensa de la Libre Competencia (TDLC), revolves around accusations that Prolesur is engaging in price-fixing practices, which Chileterra claims are below the real value of fresh milk.

Legal Accusations

The lawsuit alleges that Prolesur is abusing its dominant market position and employing exploitative practices that have resulted in financial inefficiencies within the dairy sector. Chileterra argues that these actions have led to a financial crisis, leaving them with debts exceeding $60 million.

Potential Penalties

Chileterra has demanded that TDLC impose strict economic sanctions on Prolesur, including a fine of up to 10,000 UTA, equivalent to approximately $8 million. The company also seeks preventative measures to curb future anti-competitive practices.

Implications

This legal battle underscores the challenges faced by smaller dairy producers in navigating market dynamics dominated by larger entities. The outcome could set a precedent in Chilean competition law, particularly in the agricultural sector.