This presentation by Chile Fiscalía Nacional Económica was made during the discussion on “Market study methodologies for competition authorities” held at the 125th meeting of the OECD Working Party No. 3 on Co-operation and Enforcement on 20 June 2017. More papers and presentations on the topic can be found out at oe.cd/1ZX.

1. FISCALÍA NACIONAL ECONÓMICA
June 20, 2017
Contact: estudiosdemercado@fne.gob.cl
www.fne.gob.cl
Fiscalía Nacional Económica
Market Studies

2. MARKET STUDIES IN CHILE
• Before 2016 amendment:
o No specific power.
o General rules used.
o No mandatory cooperation by private parties.
o Most market studies were general in nature and outsourced.
• After 2016 amendment
o Specific power.
o Mandatory cooperation from private parties.
o New division with a small team of 3 (1 PhD from Berkeley, 1
PhD from Oxford, one junior economist).
o Power to make recommendations to government.
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3. FIRST MARKET STUDY: ANNUITIES
• Work before launch of first market study
o Guidelines drafted following OECD recommendations from the
“Competition and Market Studies in Latin America” (2015) project.
o FNE had a list of markets with possible competition issues but no specific
competition law infringements were clear.
o A general review of these markets was performed by the new market studies
division. First market picked.
• Coordination work before launch:
o Level of secrecy before launch: Advice given by the CMA (UK).
o Privates meetings with Finance Ministry, Pensions Regulator and Insurance
Regulator.
o Good relations developed with regulators.
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4. FIRST MARKET STUDY: ANNUITIES
• Why it was picked:
o A significant number of retirees opt for annuities;
o Insurance companies manage over USD 57 bn on funds collected for
annuities.
o The Chilean system has a public exchange which allows insurance
companies to offer annuities at the same time to retirees and this exchange
ranks the offers.
o Irrational behaviour was found amongst a significant part of retirees.
o Intermediaries are found to have a negative effect on retirees decisions.
• Launch:
o Press release.
o Significant interest.
o News covered in all major newspapers and television channels.
o FNE did not grant any formal interviews.
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