The Philippine Competition Commission (PCC) has announced that it will file a case against onion importers and traders engaged in anti-competitive practices, in response to President Ferdinand R. Marcos Jr.’s directive.
In its August 13 memorandum to President Marcos, coursed through Executive Secretary Lucas Bersamin, the PCC stated that it is filing a case against 12 companies and individuals involved in onion importation and trading for violating the Philippine Competition Act.
Based on an investigation conducted by the PCC’s Enforcement Office, the respondents were found to have agreed to allocate the supply of onions in the country.
The PCC reported that evidence showed the respondents assigned among themselves sanitary and phytosanitary import clearances (SPSICs) issued by the Department of Agriculture-Bureau of Plant Industry (DA-BPI) and distributed the volume of onions allowed for importation.
“By agreeing to allocate SPSICs and divide among themselves the actual volume of imports, respondents effectively controlled more than 50 percent of the volume of onions imported into the Philippines during the relevant period. This is an anti-competitive agreement penalized under Section 14(b)(2) of the PCA,” the PCC said.
“Respondents also colluded to lessen competition in the market. Evidence showed that respondents, despite being competitors, shared, exchanged, and discussed sensitive business information such as price, suppliers, customers, volume, shipping, distribution, and storage.”
With such a scheme, the PCC explained that the importers and traders avoided competing with each other, failed to independently decide on their policies, and substituted the risk of competition with cooperation.
The PCC added, “Such an agreement has the object of restricting or distorting competition and has inherent restrictive effects upon competition,” an anti-competitive agreement penalized under Section 14 of the PCA.
The Enforcement Office has recommended a total fine of PHP2.4 billion against the violators.
Under the President’s SONA Directive No. PBBM-2023-021 (SONA Directive), he instructed the PCC and other government agencies to pursue the filing of cases against smugglers, hoarders, and those engaged in anti-competitive practices. PND
