The Competition Agency (FNE) recently gave a clear sign to the market by blocking a concentration transaction for the first time since the new merger control system entered into force. The FNE dismissed the efficiencies and mitigation measures raised by the parties, as the risks to competition were too great according to its guidelines.
As with any other contract, general rules of interpretation are crucial to ascertain the scope and reach of arbitration agreements. The Supreme Court recently missed the chance to provide a sharper and more sophisticated decision concerning the applicable legal rules of interpretation of arbitration agreements, which is a crucial matter for the uniform enforcement of international commercial arbitration agreements.
The latest reform of the Competition Statute introduces a preventive control procedure for merger operations that have effects in Chile. As of June 1 2017 the national economic prosecutor will undertake a control procedure for merger operations before they begin. The amendment aims to provide legal certainty and reduce the length of merger control procedures.
The autonomy of parties to agree on an arbitral procedure is a basic principle of international commercial arbitration. However, parties occasionally try to deny the recognition of awards issued according to agreed rules, claiming that they are unfair or contrary to due process. A recent Supreme Court case on this matter helps to circumscribe the concept of 'proper notice' and protects parties' procedural autonomy, which will ensure the continuing development of international commercial arbitration.
Changes were recently introduced to Chile's antitrust regulation, including a mandatory M&A review by the National Economic Prosecutor's Office, a ban on interlocking directorates and mandatory notification of cross-ownership between rival firms. These changes will have a significant impact on firms in the short term. The new administrative duties that the act imposes are preventive in character and align Chile's antitrust regulations with international practice.
In international commercial arbitration, parties sometimes try to apply domestic civil procedural rules and argue that arbitral awards made in violation of these rules should be vacated for being contrary to public policy. However, a recent court decision shows that public policy cannot be assimilated with every procedural rule and requirement applicable to domestic litigation, and should thus deter future parties from trying to vacate arbitral awards by invoking possible conflict with the Civil Procedure Code.