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A dozen onion importers and traders will be charged with engaging in anti-competitive practices by the Philippine Competition Commission
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The PCC had determined that the 12 companies and persons had colluded to lessen competition in the market
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The PCC recommended the imposition of a P2.4-billion fine against the importers and traders
A dozen onion importers and traders will be charged with engaging in anti-competitive practices by the Philippine Competition Commission (PCC).
Malacañang recently announced the PCC had determined that the 12 companies and persons had colluded to lessen competition in the market. The entities were not identified.
The Presidential Communications Office (PCO) cited a memorandum from President Ferdinand Marcos, Jr. for the filing of charges, as he had warned during his State of the Nation Address that hoarders and smugglers of farm goods that their days were numbered.
The PCC’s enforcement office recommended the imposition of a P2.4-billion fine against the importers and traders.
In a statement, the PCO said: “Based on investigation conducted by the PCC’s enforcement office, the respondents agreed to allocate the supply of onions in the country.” Evidence showed that they had assigned among themselves sanitary and phytosanitary import clearances (SPSICs) issued by the Agriculture department’s Bureau of Plant Industry. They then distributed the volume of onions allowed for importation.
The PCC said in a memorandum coursed through Executive Secretary Lucas Bersamin that 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.”
The Commission added this was an anti-competitive agreement punishable under the Philippine Competition Act.
The 12 respondents had colluded to lessen competition in the market, according to the PCC. Evidence showed that despite their being competitors, they had “shared exchanged, and discussed sensitive business information” such as price, suppliers, customers, and the like.
The parties to be charged were not identified.
The PCC also said that the 12 traders and importers had avoided competing with each other and failed to independently decide on their policies.
They had, therefore, substituted the risk of competition with cooperation.
In engaging in the distortion of competition, their act was punishable under Section 14 of the competition law.
