Article
14.1:
Definitions

For the purposes of this Chapter:

(a) competition authority means:

(i) for
Australia, the Australian Competition and Consumer Commission
(ACCC) or its successor; and

(ii) for Chile,
the Fiscalía Nacional Económica or its
successor;

(b) competition law means:

(i) for
Australia, the Trade Practices Act 1974 (excluding Part
X) and any regulations, made under that Act, as well as any
amendments thereto; and

(ii) for Chile,
Decree Law No. 211 of 1973 and any implementing regulations, as
well as any amendments thereto;

(c) anti-competitive activity means public or private
business conduct or transactions that adversely affect
competition, such as:

(i)
anti-competitive horizontal arrangements between
competitors;

(ii)
anti-competitive unilateral conduct;

(iii)
anti-competitive vertical arrangements; and

(iv)
anti-competitive mergers and acquisitions;

(d) enforcement activity means any application of
competition law by way of investigation or proceeding conducted
by a Party, but shall not include research, studies or surveys
with the objective of examining the general economic situation
or general conditions in specific industries. Such
research, studies or surveys shall not be construed so as to
include any investigation with regard to suspected violation of
competition law;

(e) enterprise with special or exclusive rights means an
enterprise to which a Party has granted special or exclusive
rights in its purchases or sales involving either imports or
exports;

(f) designate means, whether formally or in effect, to
establish, designate, or authorise a monopoly or to expand the
scope of a monopoly to cover an additional good or service;

(g) monopoly means an entity, including a consortium or
government agency, that in any relevant market in the territory
of a Party is designated as the sole provider or purchaser of a
good or service, but does not include an entity that has been
granted an exclusive intellectual property right solely by
reason of such grant;

(h) non-discriminatory treatment means the better of
national treatment and most-favoured-nation treatment, as set
out in the relevant provisions of this Agreement; and

(i) in
accordance with commercial considerations means consistent
with normal business practices of privately-held enterprises in
the relevant business or industry.

Article
14.2:
Objectives

1.
Recognising that anti-competitive practices have the potential
to restrict bilateral trade and investment, the Parties believe
that proscribing anti-competitive activities and implementing
policies that promote economic efficiency and consumer welfare
will help secure the benefits of this Agreement.

2. With a
view to preventing distortions or restrictions of competition
which may affect trade in goods or services between them, the
Parties shall give particular attention to anti-competitive
activities.

3. The
Parties agree, within their existing domestic legal frameworks,
to coordinate on the implementation of competition laws.
This will include notification, consultation and exchange of
non-confidential information.

4. The
Parties acknowledge the importance of contributing to the
development of best practice in the area of competition policy
in global and plurilateral fora.

Article
14.3:
Competition Law and Anti-competitive Activities

1. Each
Party shall maintain or adopt measures consistent with its
domestic law to proscribe anti-competitive activities and take
appropriate action with respect thereto, recognising that such
measures will help realise the objectives of this
Agreement. Each Party shall ensure that a person subject
to the imposition of a sanction or remedy for violation of such
measures is provided with the opportunity to be heard and to
present evidence, and to seek review of such sanction or remedy
in a court or independent tribunal of that Party.

2. Each
Party shall ensure that all businesses operating in its
territory are subject to its competition laws. Parties
may exempt businesses or sectors from the application of
competition laws, provided that such exemptions are transparent
and are undertaken on the grounds of public policy or public
interest. Where a Party considers such an exemption might
adversely affect its interests, it may seek consultations
pursuant to Article 14.7.

3. Each
Party shall maintain an authority or authorities responsible
for the enforcement of its national competition laws. In
enforcing its competition laws, each Party's competition
authority will treat nationals of the other Party no less
favourably than it treats its own nationals in like
circumstances.

4. The
Parties recognise the importance of effective competition law
enforcement in the free trade area. To this end, the
Parties shall cooperate, on mutually agreed terms, on the
enforcement of competition laws.

Article
14.4:
Enterprises with Special or Exclusive Rights, including
Designated Monopolies

1. Nothing
in this Chapter shall be construed to prevent a Party from
granting to an enterprise special or exclusive rights or
designating a monopoly provided that this is done in accordance
with the Party's domestic law.

2.
Recognising that enterprises with special or exclusive rights,
including designated monopolies, should not operate in a manner
that creates obstacles to trade and investment, each Party
shall ensure that any enterprise with special or exclusive
rights, including any privately or publicly designated
monopoly:

(a) acts solely in
accordance with commercial considerations in its exercise of
special or exclusive rights including, where applicable, the
purchase or sale of the monopoly good or service in the
relevant market, including with regard to price, quality,
availability, marketability, transportation, and other terms
and conditions of purchase or sale, except to comply with any
terms of its grant or designation that are not inconsistent
with subparagraph (b) or (c);

(b) provides
non-discriminatory treatment to covered investments, to goods
of the other Party, and to service suppliers of the other Party
in its exercise of special or exclusive rights including, where
applicable, the purchase or sale of the monopoly good or
service in the relevant market;

(c) does not use
its special or exclusive rights including, where applicable,
its monopoly position to engage, either directly or indirectly,
including through its dealings with its parent, subsidiaries,
or other enterprises with common ownership, in anti-competitive
practices in a non-monopolised market in its territory, where
such practices adversely affect covered investments; and

(d) acts in a
manner that is not inconsistent with the Party's
obligations under this Agreement wherever such an enterprise
with special or exclusive rights or designated monopoly
exercises any regulatory, administrative or other governmental
authority that the Party has delegated to it in connection with
the exercise of special or exclusive rights including, where
applicable, the monopoly good or service, such as the power to
grant import or export licences, approve commercial
transactions, or impose quotas, fees or other charges.

3. This
Article does not apply to government procurement.

4. Where a
Party grants to an enterprise special or exclusive rights or
designates a monopoly and it determines that the grant or
designation may affect the interests of the other Party, the
Party shall endeavour to:

(a) at the time of
the grant or designation introduce such conditions on the
exercise of special or exclusive rights including, where
applicable, the operation of the monopoly so as to minimise any
adverse affect on the other Party, as communicated by that
Party, under Article 14.7; and

(b) provide
written notification, in advance wherever possible, to the
other Party of the grant or designation.

Article
14.5:
State Enterprises

1. Nothing
in this Chapter shall be construed to prevent a Party from
establishing or maintaining a state enterprise, provided that
this is done in accordance with the Party's domestic
law.

2. Each
Party shall ensure that any state enterprise that it
establishes or maintains acts in a manner that is not
inconsistent with the Party's obligations under this
Agreement wherever such enterprise exercises any regulatory,
administrative or other governmental authority that the Party
has delegated to it, such as the power to expropriate, grant
licences, approve commercial transactions, or impose quotas,
fees or other charges.

3. Each
Party shall ensure that any state enterprise that it
establishes or maintains accords non-discriminatory treatment
in the sale of its goods or services.

4. Each
Party shall take reasonable measures to ensure it does not
provide any competitive advantage to any government-owned
business simply because it is government owned. This
Article applies to the business activities of government-owned
businesses and not to their non-business, non-commercial
activities.

Article
14.6:
Notifications

1. Each
Party, through its competition authority, but subject to its
laws and regulations, shall notify the competition authority of
the other Party of an enforcement activity where it determines
that the enforcement activity:

(a)
is liable to substantially affect the other Party's
important interests;

(b) relates to
restrictions on competition which are liable to have a direct
and substantial effect in the territory of the other Party;
or

(c) concerns
anti-competitive acts taking place principally in the territory
of the other Party.

2.
Provided that it is not contrary to the Parties'
competition laws and does not affect any investigation being
carried out, notifications shall take place at an early stage
of the procedure.

3. The
notifications provided for in paragraph 1 should include
sufficient detail to permit the other Party to evaluate its
interests.

4. The
Parties undertake to ensure that notifications are made in the
circumstances set out above, taking into account the
administrative resources available to them.

Article
14.7:
Consultations

1. If the
competition authority of a Party considers that an
investigation or proceeding being conducted by the competition
authority of the other Party may adversely affect its important
interests it may transmit its views on the matter to the other
Party's competition authority.

2. A Party,
through its competition authority, may request consultations
regarding the issues addressed in paragraph 1 as well as any
other matter covered by this Chapter. The requesting
Party shall indicate the reasons for the request and whether
any procedural time limit or other constraints require that
consultations be expedited. Such consultations shall be
without prejudice to the right of a Party so consulted to take
any measure under its competition laws it deems
appropriate.

Article
14.8:
Exchange of Information, Transparency and
Confidentiality

1. With a
view to facilitating the effective application of their
respective competition laws, the competition authorities may
exchange information.

2. With the
objective of making their competition policies as transparent
as possible, each Party shall ensure that its laws, regulations
and procedures addressing competition shall be in writing and
shall be published or otherwise made publicly available.

3. On the
request of a Party, the other Party shall endeavour to make
available public information concerning:

(a)
the enforcement of its measures proscribing anti-competitive
activities;

(b) its state
enterprises, and enterprises with special or exclusive rights,
including designated monopolies, provided that requests for
such information shall indicate the entities involved, specify
the particular goods and/or services and markets concerned, and
include indicia that these entities may be engaging in
practices that may hinder trade or investment between the
Parties; and

(c) exemptions to
its measures proscribing anti-competitive activities, provided
that requests for such information shall specify the particular
goods and/or services and markets to which the request
relates.

4. Any
information or documents exchanged between the Parties on a
confidential basis pursuant to the provisions of this Chapter
shall be kept confidential. Neither Party shall, except
to comply with its domestic legal requirements, release or
disclose such information or documents to any person without
the written consent of the Party which provided such
information or documents. Where the disclosure of such
information or documents is necessary to comply with the
domestic legal requirements of a Party, that Party shall notify
the other Party where possible before such disclosure is made
or otherwise at the earliest practicable time.

5. The Party
providing such confidential information shall furnish
non-confidential summaries thereof if requested by the other
Party. These summaries shall be in sufficient detail to
permit a reasonable understanding of the substance of the
information submitted in confidence. When a Party
indicates that such confidential information is not susceptible
to a public summary and where such information is submitted to
a judicial authority, it shall be at the discretion of that
judicial authority whether to consider such information.

Article 14.9: Dispute Settlement

1. Neither Party may have recourse to dispute settlement under this
Agreement for any matter arising under this Chapter.

2. In the event that a breach of this Chapter by an enterprise exercising
any regulatory, administrative or other governmental authority
that the Party has delegated to it also constitutes a breach of
another Chapter of this Agreement, this Article shall not
preclude recourse by a Party to dispute settlement for the
breach of the other Chapter by such an enterprise.

Article 14.10: Technical Assistance

The Parties may provide each other technical assistance in order to take advantage of their respective experience and to strengthen the implementation of their competition laws and policies.