As I understand it, the pipe drains out the fridge, and the water collects in a basin that the compressor users as a heat sink. At least, that's what it looked like was happening on my gran's fridge, which is fairly archaic come to think of it.
That's what I've seen too. Although I don't think the heat sink part is vital to the functioning, just saves having to get rid of the water and maybe a fraction cheaper.
As I understand it, the pipe drains out the fridge, and the water collects in a basin that the compressor users as a heat sink. At least, that's what it looked like was happening on my gran's fridge, which is fairly archaic come to think of it.