SANTIAGO Dec 20 Kimberly-Clark Corp and
competitor CMPC allegedly fixed prices for diaper
products in Chile between 2002 and 2009, according to a document
sent to the nation's competition regulator, daily newspaper La
Tercera reported on Tuesday.
The companies agreed on price hikes, coordinated promotional
activities, and shared information regarding pricing that would
have affected the tissue and sanitary businesses, according to
the document, which was written by CMPC and sent to the
regulator, FNE. The paper said it reviewed the document.
According to the document, the agreements were primarily
involving baby diapers but also involved other products in the
"These bad practices by some businessmen directly affect
confidence and curb our chances of development ... we can't
allow this to be repeated," Chile's President Michelle Bachelet
said in a televised speech.
Neither company was available to comment.
In December 2015, Peru's consumer regulator said it could
sanction Kimberly-Clark with a fine of up to 12 percent of its
earnings after CMPC reported the two companies, which together
control 88 percent of the toilet and tissue paper market in
Peru, fixed prices for years.
CMPC and a subsidiary of Swedish-owned SCA were
found by antitrust authorities in October 2015 to have colluded
for at least a decade in Chile's tissue paper market.
CMPC shares were down 3.3 percent on the Santiago Stock
Exchange. Kimberly dipped 0.6 percent.
(Reporting by Anthony Esposito; Editing by Jeffrey Benkoe)