Chile competition authority seeks nearly $40 million fine against Pluxee
Details of the Competition Watchdog's Allegations and Market Impact
By Dimitri Rhodes
Background of the Alleged Collusion
May 27 (Reuters) - Chile's competition watchdog is seeking a fine of $39.6 million against French voucher and benefits provider Pluxee over alleged collusion with Edenred in the country, Pluxee said on Wednesday.
The National Economic Prosecutor's Office (FNE) issued its complaint on Tuesday, accusing Pluxee of colluding with rival Edenred to allocate market shares between 2013 and 2021.
Market Share and Company Operations
Pluxee, which operated as Sodexo in Chile until 2024, and Edenred controlled more than 80% of Chile's food and clothing voucher market during the period, according to the FNE.
Financial Implications and Analyst Reactions
The proposed fine represents about 15% of Pluxee's estimated net profit for the 2028 fiscal year, AlphaValue analyst Yi Zhong said, adding she expected the company's shares to react negatively.
Company Responses and Legal Proceedings
Pluxee said in a press release it would assess the complaint and determine appropriate measures while reaffirming its commitment to ethical business conduct. It did not immediately respond to a Reuters request for additional comment.
Regulatory Actions and Leniency Programmes
The Chilean regulator asked the country's antitrust court to exempt Edenred from financial penalties due to its participation in a leniency programme. An Edenred spokesperson said the company was confident the final phase of the process would not lead to any sanctions for it.
Edenred was the first to report the conduct in 2023 in a "first-through-the-door" programme, leaving Pluxee unable to participate, Zhong said.
Pluxee's Remaining Legal Options
"Pluxee's remaining options are to defend itself in court to seek a reduction in the penalty or pursue an out-of-court settlement," Zhong added.
The legal process could take two to four years for an initial trial, she said, with potential appeals meaning a final ruling might take until 2028 or 2030.
Broader Business Context and Market Reaction
Pluxee had last year said it faced temporary headwinds in Chile, including the discontinuation of a large public benefits contract in 2025. Its Latin America business is also bracing for the impact from Brazil's new regulation that has capped merchants' fees at 3.6% since March.
Pluxee shares fell 1.7% in early trading, while Edenred was down around 1%.
(Reporting by Dimitri Rhodes in Gdansk, editing by Milla Nissi-Prussak)
