12 Unscrupulous Onion Importers, Traders to Face Charges — PCC

The Philippine Competition Commission (PCC) announced that charges will be filed against 12 onion importers and traders accused of engaging in anti-competitive practices, following a directive from President Ferdinand Marcos Jr.

According to a press release from the Presidential Communications Office, the charges come as a response to violations of the Philippine Competition Act (PCA) by these companies and individuals involved in onion importation and trading. The PCC found that the parties colluded to control the supply of onions in the country.

The investigation revealed that the accused entities coordinated among themselves to allocate sanitary and phytosanitary import clearances (SPSICs) issued by the Department of Agriculture-Bureau of Plant Industry (DA-BPI). They also divided the volume of onions permitted for importation, which allowed them to control a significant portion of the market.

Anti-Competitive Practices Uncovered

The PCC stated that the respondents’ actions effectively gave them control over more than 50% of the imported onion supply in the Philippines during the relevant period. This kind of agreement is considered anti-competitive and is penalized under Section 14(b)(2) of the PCA.

Moreover, the respondents were found to have colluded to lessen market competition. Evidence showed they shared and exchanged sensitive business information, including prices, suppliers, customers, volume, shipping, distribution, and storage details. This cooperation between supposed competitors meant they did not operate independently, which distorted and restricted fair competition.

The PCC highlighted that such agreements inherently restrict competition and have adverse effects on market dynamics.

Penalties and Next Steps

The PCC has recommended a total fine of PHP 2.4 billion to be imposed on the respondents for their anti-competitive conduct. The move aligns with President Marcos’ directive to crack down on smugglers, hoarders, and those engaged in practices that disrupt fair market competition.

This development underscores the government’s ongoing efforts to maintain fair trade practices and protect consumers from exploitative behaviors in the market.