Decree Law N¢X. 211 of 1973 of the Ministry of Economy, Development and Reconstruction which establishes the rules for the defense of free-competition
(as revised and published on 27 October 1980 by Decree N¢X. 511 - Official Gazette N¢X. 30,800)
NUMBER 511. - Santiago, September 17 1980. - Whereas: The provisions established in Decree Laws Nº 21l of 1973; N¢X 1,386 of 1976; N¢X 2,760 of 1979; in article 15th of Decree Law N¢X 2,879 of the same year; in article 5th of Decree Law N¢X 3,057 of 1980 and making use of the authorities conferred by Decree Law N¢X 3,145 of 1980 upon me,
I DO DECREE:
Be the following revised, coordinated and systematized text of Decree Law N¢X. 211 of 1973 fixed, which established rules for the defense of free-competition:
DECREE LAW Nº 211 of 1973
TITLE I
GENERAL PROVISIONS
ARTICLE 1st. - Anyone executing or going into individually or collectively any fact, act or convention tending to impede free-competition within the country in economic activities, both in that of internal character and concerning external trade activities, shall be punished with petty imprisonment in any of its degrees.
When the offense affects essential articles or services, such as those corresponding, to feeding, clothes, housing, medicine or health, the punishment will be increased in one degree.
ARTICLE 2nd. - To the effects provided in the foregoing article, it will be considered among others, as facts, acts or conventions tending to impede free-competition, the following:
ARTICLE 3rd. - In the event of being a question of juridical persons and without prejudice of the criminal liability to which their lawful representatives or natural persons acting in their representation should become deserving, the dissolution of societies, corporations and other juridical persons of private law may be ordered.
In the event of being a question of a society or an agency of a foreign stock company, the sentence, applying the punishment established in this article shall be registered at the respective Commercial Register and published by a time at the Official Gazette.
ARTICLE 4th. - The concession of any monopoly for exercising economic activities, such as extractive, industrial, commercial or services activities shall not be able to be granted to private individuals.
The monopoly of certain activities such as those pointed out in the foregoing paragraph, only by means of law, may be reserved to fiscal, semi-fiscal, public, autonomous administrative or municipal institutions.
Notwithstanding, the execution or the maintenance of those acts or contracts referred to in the foregoing articles could be authorized, provided that the national interest may require it and that they are necessary for the stability or development of national investments or that they consist in acts or contracts in which any of the institutions pointed out in paragraphs 1st and 2nd of article 16th of Law N¢X 10,336 is part. They shall be authorized by founded supreme decree and after a previous favorable report of the Resolutory Commission established in the present law
ARTICLE 5th. - Without prejudice of provisions established in the present law, lawful and regulatory provisions referred to copyright and industrial property, mining, specially petroleum, production, trade and distribution of saltpeter, iodine and copper, will continue in force, as well as those contained in the Sanitary Code; contemplated in Law on Alcoholic liquors and drinks; regulating the creation and functioning of enterprises of public or municipal services; related to banking enterprises and stock exchange; and related to transports, charters and coastal trade, auction sale and credit on chattel mortgage.
Likewise, lawful and regulatory provisions, which confer attributions upon authorities with respect to the exercise of economic activities, including those related to the maximum price fixing and control of its fulfillment will remain in force.
Nevertheless, none monopoly may be established, even by virtue of rules referred to in the two preceding paragraphs without a previous favorable report from the Resolutory Commission.
The Resolutory Commission shall be able to apply for modification or derogation of lawful or regulatory precepts, including those pointed out in this article as limiting or eliminating free-competition, those being considered thereby as prejudicial for the joint interest.
ARTICLE 6th. - For the prevention, investigation, correction and repression of attempts to free-competition or abuses in which may incur whoever occupying a monopolistic situation, even though those would not be constituent of offense, there will exist the following organizations and Services:
All references made by lawful or regulatory rules to the Provincial Preventative Commissions, Prosecutor¡¦s Office for the Free-competition Defense and Prosecutor, shall be understood as made to the Regional Preventative Commissions, National Economic Prosecutor¡¦s Office and National Prosecutor, respectively.
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TITLE II
OF REGIONAL AND CENTRAL PREVENTATIVE COMMISSIONS
ARTICLE 7th. - In each capital of region will exist a Regional Preventative Commission, which will be composed of the following persons:
The member mentioned in the foregoing letter a) should be substituted, in the event of absence or impediment, by his lawful alternate. With respect to the other members, a holder of the office and an alternate shall be appointed who will remain for two years in their offices.
In absence of the President in office or alternate, the Commission shall be presided over by the member who is present and follows him according to the priority order established in this article.
The quorum to hold a meeting shall be at least of three members, and the resolutions shall be adopted by a simple majority. In case of a tie vote, the vote of who is presiding shall decide.
ARTICLE 8th. - The Regional Preventative Commissions will have the following authorities and duties:
1) To suspend for up to the term of fifteen days, the application of agreements of apportionment of quotas of production, of distribution and of market zones, or of any other kind that may constitute fundamentally, any of the actions described in articles 1st and 2nd. This suspension may be renewed only a time and in equal term, on demand of Prosecutor.
2) Fixing within its jurisdictional zone maximum prices to goods and services, subject matter of investigation, for a term up to fifteen days, extendible by the proper Commission in justified resolution, for an equal term, and
If the matter submitted to the knowledge of the Regional Preventative Commission would have a national character or would be referred to more than a region, this Commission shall abstain from its knowledge and send the antecedents to the Central Preventative Commission.
ARTICLE 9th. - The decisions and measures agreed upon by the Regional and Central Preventative Commissions may be claimed before the Resolutory Commission, within the term of three working days.
This appeal, which will not suspend the effects of claimed resolutions, shall be brought before the respective Regional or Central Preventative Commission, the latter will remit it thereon informed with the antecedents attached, within the third day.
The Resolutory Commission will determine on the claim within the term of fifteen days counted from antecedents are received. If this Commission would not resolve within these terms, the claim will be understood as accepted.
The provision established in the foregoing paragraph will not govern in the event the Commission considers appropriate to approach to the knowledge of the matter, by virtue of its proper authorities, with independence of what has been requested by the appellant, what it must declare previously, arranging for the hearing of concerned persons. In this case will be suspended the effects of the claimed resolution.
ARTICLE 10th. - The Central Preventative Commission will be composed of:
The corresponding authorities and organizations shall appoint a representative in office and another alternate, who shall remain two years in their offices.
In absence of the President in office or alternate, the Commission shall be presided over by the member who is present and follows him according to the priority order established in this article.
The quorum to hold a meeting shall be at least of three members, and the resolutions shall be adopted by a simple majority. In case of a tie vote, the vote of who is presiding shall decide.
ARTICLE 11th. - The Central Preventative Commission shall act as Preventative Commission for the Metropolitan Region of Santiago, with any authorities conferred by article 8th. The Commission shall be in charge, especially of knowing about all such acts or situations that included in said article shall have a national character or shall refer to more than one region.
ARTICLE 12th. - No administrative or judicial appeal shall be valid against the resolutions of the Regional and Central Preventative Commissions, except the one provided in article 9th.
ARTICLE 13th. - The resolutions and agreements of the Regional and Central Preventative Commissions shall not prevent the Resolutory Commission and the Prosecutor¡¦s Office from exercising their authorities where appropriate.
ARTICLE 14th. - The acts or contracts executed or entered into according to the decisions of the Regional or Central Preventative Commissions shall not bring any responsibility except for the case that, subsequently and on the basis of new antecedents, they are qualified as contrary to free competition by themselves or by the Resolutory Commission, and as from the date the resolution making this consideration is notified or published.
ARTICLE 15th. - The Regional Preventative Commissions shall hold a meeting at the respective Superintendency or at the seat agreed upon by them, with the favorable vote of the member appointed by the Superintend.
The expenses originated from its functions shall be chargeable to the Superintendency which shall appoint the public officer(s) who administratively will be in charge of serve them, without being entitled to a special remuneration thereof.
The Central Preventative Commission shall function at the seat of the National Economic Prosecutor¡¦s Office and shall be served by the its Secretariat.
ARTICLE 16th. - The Resolutory Commission shall be composed of the following persons:
In case of impediment of the person mentioned in letter a), the Supreme Court shall appoint another of its members instead of him.
The other members of the Commission shall be replaced by their alternates. The members of the Commission shall remain two years in their offices. Those members mentioned in letter d) and e) shall be appointed by drawing lots before the President of the Commission, in accordance with the internal rules agreed by him.
A lawyer of the Staff roster of the National Economic Prosecutor's Office shall act as Secretary of the Commission and the latter or another professional of this Service shall act as reporter of those matters whereof he shall be informed.
ARTICLE 17th. - The Resolutory Commission shall supervise the proper enforcement of the rules of the present law, and the correct performance of the organizations it establishes and shall give the general instructions to be observed. Its decisions or resolutions shall be binding for the Preventative Commissions.
The duties and authorities of this Commission shall be:
- To modify and put an end to acts, contracts, covenants, systems or agreements which shall be contrary to the provisions of the present law;
- To order the modification or dissolution of the companies, corporations and other juridical persons of private law, that have been a party in such acts, contracts, covenants, systems or agreements referred to in the foregoing number;
- To declare the provisional incompetence of the persons responsible for holding executive positions in professional associations or trade associations, which could be regulated from one to five years;
- To impose fines for the benefit of the Government up to an amount equivalent to ten thousand tributary units. The fines shall be judiciously regulated according to the working capital or the economic capacity of the infractor and the severity of the infringement;
- To order the National Prosecutor to exercise the penal action concerning the offenses referred to in articles 1st and 2nd;
ARTICLE 18th. - The Resolutory Commission shall adopt its decisions by majority of votes, resolving in case of a tie vote, the vote of the President. The quorum shall be of three members and a meeting shall not be able to be held without the attendance of the President.
The Commission shall hold its meetings at the Courthouse of the Courts of Justice or at the public agency to be designated annually at its first meeting.
The grounds for implication and for challenge provided in articles 195th and 196th of the Court's Organic Code are applicable to the members of the Commission. The alleged grounds may be accepted by the concerned member, and if so does not occur, they shall be full pronounced by the Commission, with exclusion of the concerned party. A fine up to twenty tributary units shall be imposed to the infractor if the implication or the challenge are unanimously rejected.
The knowledge and verdict of the cases referred to in letter a) of the foregoing article 17th, shall be submitted to the following process:
The personal notification shall be carried out by a Commissioner of Oaths by delivering a certified copy of the resolution and the antecedents that originate it. The Commission may order the granting of an abstract of said documents.
Any place shall be considered as proper to deliver the personal service. The Commissioner of Oaths shall put the notification on the records of the process, in the form provided in article 43rd of the Civil Procedure Code.
The Commission, with solely the report of the Commissioner of Oaths stating that the person to be notified has not been found nor the place where he lives, may order to notify in the form provided in the second paragraph of Article 44th of the Civil Procedure Code.
The parties who shall wish to adduce testimonial evidence shall submit their list of witnesses within the second working day after the beginning of the probatory term and no more than four witnesses by each party shall be accepted to declare.
The Commission shall resolve, during any state of the lawsuit and even after the hearing of the same, the fulfillment of the probatory actions, which it may deem convenient.
The notification by registered letter will be considered fulfilled on the third working day counted as from the receipt of the letter by the Post and Telegraph Office.
Ñ. When it may be necessary to perform an action outside the territory of the Metropolitan Region of Santiago, the Commission could entrust its fulfillment to the Preventative Commissions or Regional Prosecutor' s Offices by sending the corresponding official letter.
ARTICLE l9th. - Only the decisions of the Resolutory Commission which order the modification or dissolution of juridical persons, the incompetence to occupy determined offices at professional associations or labor unions and application of fines shall be claimable.
The National Prosecutor may also present claims against the decisions of the Resolutory Commission fallen on subjects referred to in the foregoing paragraph, although they are absolving ones.
The appeal shall be brought to the Resolutory Commission, directly or through the corresponding Preventative Commission, and one of the courts of the Supreme Court shall hear the appeal after the previous hearing of the Prosecutor of this Court. The appeal shall be presented within ten working days, as from the corresponding notification. It shall appear in an outstanding place of the Board, the hearing of the lawsuit shall not be adjourned, and the judgement will be conscientiously pronounced.
ARTICLE 20th. - The fines imposed by the Resolutory Commission shall be paid within the next ten days as from the date on which the corresponding decision is executed.
Furthermore, in order to bring the claim appeal referred to in the foregoing article, the fifty-percent of the resolved fine shall be paid, without considering the legal charges. The National Prosecutor when he may be the person bringing the appeal shall be exempted from this requisite. If the concerned person should not pay the fine, he will be imposed, by a substitution procedure, the imprisonment penalty, stipulating one day for each monthly basic salary; the Judge of the Criminal Court of the domicile of the transgressors will apply said penalty without a judgement and on the sole demand of the Commission.
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TITLE IV
OF THE NATIONAL ECONOMIC PROSECUTOR¡¦S OFFICE
ARTICLE 21st. - The National Economic Prosecutor's Office shall have its seat in Santiago, shall be independent from every organization or service and shall be connected with the Supreme Government through the Ministry of Economy, Development and Reconstruction. Its Higher Head shall be the National Prosecutor, who will be a lawyer, at least five years before his appointment.
The National Prosecutor will be freely appointed by the President of the Republic, will be governed by regulations of the Administrative Ordinance and shall only be removed from office and penalized, as the General Comptrollership of the Republic may propose, after a previous summary ordered thereby.
ARTICLE 22nd. - In every capital of Region there shall be an officer who will depend on the National Prosecutor, who in the capacity of Regional Prosecutor shall fulfill the duties pertaining to him within the territory of the respective region.
ARTICLE 23rd. - The National Prosecutor's Office personnel, including that performing offices as Higher Managerial Officers shall be appointed by the National Prosecutor, depending on the latter and they will be governed by the Administrative Ordinance. The Regional Attorneys at Law and Prosecutors shall remain in office for the time they have the trust of the National Prosecutor.
The following staff of the National Economic Prosecutor's Office is established.
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| ¡@ | S.U.S. DEG | LEVEL | N¢X OF OFFICES |
| HIGHER HEAD OF THE SERVICE | |||
| National Prosecutor | 4B | I | 1 |
| SENIOR DIRECTORS | |||
| National Vice-Prosecutor | 2 | I | 1 |
| Head Lawyer of the Antimonopoly Division | 3 | II | 1 |
| Head Lawyer of the Economic Felony Division 3 | 3 | II | 1 |
| Head Lawyer of the Regional Division | 3 | II | 1 |
| Regional Prosecutors | 4 | III | 12 |
| LAWYERS | |||
| Lawyers | 4 | I | 3 |
| Lawyers | 6 | I | 3 |
| Regional Attorneys at Law | 7 | I | 12 |
| ENGINEERS | |||
| Engineers | 4 | I | 3 |
| EXECUTIVE SECRETARIES | |||
| Executive Secretaries | 15 | I | 2 |
| OFFICERS OF THE BUDGET DIVISION | |||
| Head of the Budget Division | 14 | II | 1 |
| Officers of the Budget Division | 16 | II | 2 |
| ADMINISTRATIVE OFFICERS | |||
| Administrative Officers | 19 | I | 2 |
| Administrative Officers | 20 | I | 2 |
| ASSISTANT SERVICES | |||
| Assistants | 25 | I | 3 |
Without prejudice of the staff established in this article, the National Prosecutor will be authorized to hire personnel, assimilated to degrees or to salaries, for studies and duties of any nature which may require the fulfillment of the functions ordered by the present law, wherefore he shall fulfill the regulations of Decree N¢X 691 of 1977, of the Ministry of Finance and the staff appointed to the Service.
The degree of lawyer is required to occupy the National Vice-Prosecutor and Regional Prosecutors. The Higher Head and the Senior Directors of the Staff of the National Economic Prosecutor¡¦s Office shall have the right to receive the salary established in article 6th of Decree Law N¢X 1,770 of 1977.
ARTICLE 24th. - The National Prosecutor, in the performance of his duties, is independent from all authorities or Courts before which he is called to fulfill them. Therefore, he may defend the interests assigned to him in the manner he deems according to law and to his own discretion.
There shall be authorities and duties of the National Prosecutor:
As to the investigations carried out by the Regional Prosecutors and accusations stated by them, the National Prosecutor may consider them as his, exercising his accusatory functions before the Resolutory Commission or he may refuse them with a based report of the same;
The National Prosecutor may also demand, by means of the corresponding officers, the examination of all the documentation and countable elements and others he deems necessary. The National Prosecutor and the officer in charge of these revisions, will only be able to inform about the data they have acquainted themselves with to the Resolutory Commission, the Preventative Commissions and the Courts of Justice. The persons who shall hamper the investigations referred to in the present provision, may be compelled with arrests up to fifteen days. If the obstacle remains, its principal may be punished with petty imprisonment in any of its degrees. If the principal were a public officer, he shall be also punished with the loss of his work.
In his case, the warrant of arrest and the criminal prosecution will be given and ordered respectively, by the Lettered Judge with criminal jurisdiction, who shall be competent according to the general rules, on demand of the National Prosecutor;
Without prejudice of what was previously established, the National Prosecutor may act as a part in the processes in which the mentioned public penal action should have been practiced by other agencies, even though he does not execute the charge;
ARTICLE 25th. - The authorities and duties of the Regional Prosecutors will be those indicated in the foregoing article, except letters b), c) and j), and the other faculties specially delegated to them by the National Prosecutor. When the knowledge of a matter may correspond to the Resolutory Commission, the respective Regional Prosecutor shall submit it to the National Prosecutor.
ARTICLE 26th. - The National Prosecutor may delegate the practice of the penal action that corresponds to him to the lawyers of the Prosecutor¡¦s Office, to the Regional Prosecutors and Attorneys at Law, or to the Defense Council of State.
ARTICLE 27th. - The National Prosecutor may, as many times he deems necessary, by himself or through a representative, assume the representation of the Prosecutor's Office in any process or likewise, intervene in any specific procedure or proceedings.
ARTICLE 28th. - The Prosecutor¡¦s Office, in its writs and proceedings before the Commissions and the Courts of Justice, will be exempt of Sealed Paper, Stamps and Seals Law, and the attorneys who shall act on its behalf, may personally appear before the Supreme Courts of Justice.
ARTICLE 29th. - The Preventative Commissions and the Prosecutor's Office to which the foregoing articles referred to, shall receive and investigate, as the case may be, all the accusations made by private individuals in relation to the acts or contracts that may imply an infringement to the rules of the present law.
ARTICLE 30th. - The members of the Preventative Commissions and of the Resolutory Commission, whatever their capacity shall be, will be understood to be included in the provision of article 260 of the Criminal Code. Such members will not have right to a special salary.
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TITLE V
OF THE PENAL LAWSUITS
ARTICLE 31st. - The criminal lawsuits for the offenses punished in this law will be subject to the ordinary proceeding for crime or simple offense of public action, without further modifications than the following.
ARTICLE 32nd. - The process may only be initiated by accusation or complaint made by the National Prosecutor, by himself or by a representative, and in any case, on the previous demand made to said Prosecutor by the Resolutory Commission.
ARTICLE 33rd. - The summary proceeding shall finish in a term of sixty days. This term, however, shall be extended for thirty more days and for one time only, if the Judge deems it essential for the investigation success; in this case, an explanatory writ shall be issued and an account shall be given to the corresponding Court of Appeals.
ARTICLE 34th. - The representative of the Prosecutor¡¦s Office may take acquaintance about what has been proceeded in the summary proceeding and on any stage of the same.
ARTICLE 35th. - The Courts of Justice will value the evidence conscientiously.
ARTICLE 36th. - All the matters executed by virtue of a specific act or convention punished by articles 1st and 2nd will be judged as a sole crime.
ARTICLE 37th. - A Minister of the corresponding Court of Appeals, as Court of one Judge, will be competent for considering in first instance.
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TRANSITORY PROVISIONS
ARTICLE 1st. - The cases which on the date of the coming into effect of the Decree Law N¢X 211 of 1973, were known by the Commission established in article 175 of Law N¢X 13,305, will continue to be heard by the Resolutory Commission according to the rules of said Decree Law.
ARTICLE 2nd. - The Regional Preventative, Central Preventative and Resolutory Commissions shall meet within the maximum term of fifteen days counted from the publication date of the Decree Law N¢X 211 of 1973 in the Official Gazette, on demand of their respective Presidents.
ARTICLE 3rd. - To all the legal effects, it is understood that the commission of Prosecutor is the successor of the employment referred to in article 175 bis of Law N¢X 13,305 and will continue to be performed by the holder who filled it on the date of the coming into effect of Decree Law N¢X 211 of 1973.
ARTICLE 4th. - As long as the President of the Republic does not make use of the faculty referred to in article 21 of this law, the Prosecutor of the Free -competition Defense, who filled the office on the date of the coming into effect of the Decree Law N¢X 2,760 of 1979, will perform the duties of the National Prosecutor.
ARTICLE 5th. - Be the provisions of Title V of Law N¢X 13,305 derogated. Be it stated that the conducts included in the constitutive facts of offense according to what is prescribed in articles 1st, 2nd and 3rd of this law, in conformity with the original text of Decree Law N¢X 211 of 1973, carried out before the applicability of the mentioned legal body, will not be liable to be penalized according to what is stated in said stipulations, nor according to what was provided by Title V of Law N¢X 13,305 derogated by the clause preceding this article, without prejudice of what is prescribed in article 1st transitory.
ARTICLE 6th. - The Regional Preventative Commissions will follow, for all the legal effects, the Provincial Preventative Commissions of the respective region and will continue knowing, without interruption, about matters that shall be carried on.
The present Provincial Preventative Commissions will continue acting until the corresponding Regional Preventative Commissions be organized, which shall do it within the term of sixty days counted from the date of the coming into effect of Decree Law N¢X 2,760 of 1979.
ARTICLE 7th. - The appointments of members of the Resolutory Commission and the Central Preventative Commission shall be made within the term of thirty days counted from the date of the coming into effect of Decree Law N¢X 2,760 of 1979.
The cases settled which shall be pending before the Resolutory Commission at the time of its constitution with its new members, shall be resolved by the members who entered into the process hearing.
ARTICLE 8th. - The National Prosecutor shall incorporate at his discretion the whole or part of the staff that at the time of the coming into effect of Decree Law N¢X 2,760 of 1979, rendered services at the Prosecutor¡¦s Office to the staff fixed by article 23rd of this law.
The salaries difference that may be arisen by the enforcement of this article, shall be paid to the officer by additional payroll, taxable in the same proportion that the salary compensating, and shall be absorbed by the promotions and designations that may benefit the officer. The staff that shall not be classified will have the right to continue receiving during six month the total salary that may have corresponded it on the month preceding the classification, in the way of indemnification, provided that such staff has not the right to pensioning.
Be it recorded, registered, published and inserted in the official Digest of the General Comptrollership of the Republic.
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Augusto Pinochet Ugarte - President of the Republic.
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José Luis Federici Rojas - Minister of Economy, Development and Reconstruction.