Noticias

The National Economic Prosecutor’s Office (“FNE”), Chile’s competition authority, will carry out a market study to analyze the competitive dynamics of e-commerce in the country.

The analysis will focus on the sale of durable physical goods to end consumers and include a review of the various segments within this market, such as advertisers, suppliers, consumers, logistics and distribution. Additionally, the study will examine the role of digital marketplace platforms and how their associated dynamics might influence the competitive dynamics of the market.

The objective of this study is to assess how the sector operates from a competition perspective, identifying potential market failures or limitations that may hinder its competitive development. If necessary, the FNE may propose regulatory amendments to the executive branch or issue recommendations to economic agents.

Over the past decade, e-commerce in Chile has grown exponentially, with annual sales projections exceeding USD 11.5 billion for 2024. This figure represents approximately 3.7% of GDP and 15% of total retail sales, a proportion expected to increase significantly over the next ten years.

“E-commerce is vital to Chile’s economy and serves as a growth driver for thousands of entrepreneurs and businesses who find opportunities to compete and innovate through this channel,” emphasized the National Economic Prosecutor, Jorge Grunberg.

“Through this study, we aim to ensure that the sector operates competitively, benefiting the many agents involved and, ultimately, consumers,” he added.

Reasons Behind the Study

The need for this analysis is based on three key factors: potential risks to the competitive evolution of the market, the importance of adopting a preventive approach to safeguard competition, and the lack of reliable and detailed information about e-commerce in Chile.

Potential Risks to Competitive Evolution

International experience indicates that e-commerce may involve commercial practices or pricing mechanisms that, if widely adopted by major stakeholders, could hinder competition.

Due to the sector’s dynamic and rapidly evolving nature, such practices, which may initially appear harmless or isolated, can quickly scale and lead to significant problems if replicated by numerous agents or implemented by actors that later achieve a dominant position.

This would be the case of the widespread use of most-favored-nation clauses or price parity clauses, which could strengthen the position of dominant platforms, making it difficult for new players to enter; commercial practices such as self-preferencing, through which dominant platforms could favor their own interests to the detriment of other suppliers who list their products on them; the imposition of contractual practices associated with the contracting of services at high costs or the requirement to contract services that are not desired by the bidders; and the use of algorithms and technologies based on artificial intelligence which, notwithstanding the significant efficiencies they may entail, could also involve risks such as the facilitation of collusion or coordination between competitors, and inefficient forms of price discrimination that could affect the competitive functioning of the market.

Relevance of a Preventive Approach

The unique characteristics of e-commerce demand a proactive approach to ensure a competitive digital market environment.

A precautionary approach is essential for marketplaces that, thanks to their distinctive network effects and growing capacity to process big data, could quickly consolidate their position in the market. This consolidation could diminish the diversity of choices for consumers and contribute to the creation of barriers to entry for new competitors.

Due to the above, the Organization for Economic Cooperation and Development (OECD) has emphasized the importance of market research as a key tool to identify competition problems in digital markets and design effective and timely solutions to them.

Information Gap

The third factor justifying this study is the lack of reliable and detailed data on e-commerce in Chile, which hampers a comprehensive evaluation of competitive dynamics and potential anticompetitive risks in the sector.

A thorough study will help bridge this gap, ensuring a competitive environment for e-commerce.

FNE’s Market Studies

This will be the tenth market study conducted by the FNE, following analyses in sectors such as Annuities, Notaries, School Textbooks, Pharmaceuticals, Public Procurement, Gas, Funeral Services, Lodging, and Higher Education. Through these efforts, the FNE reaffirms its commitment to promoting competitive and transparent markets.

The FNE has outlined a work plan that includes an information-gathering and analysis phase, running from November 2024 to November 2025. A Preliminary Report will be published in December 2025, followed by a public consultation period, with the Final Report to be released in March 2026.

Those interested in participating in this market study may submit written information or request meetings with the team via email at estudiosdemercado@fne.gob.cl or by phone at +56 2 2753 5601.