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The Philippine Competition Commission found six firms and their officers liable for an onion cartel that allocated the market in imports, cold storage and wholesale distribution
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The combined fine of P1.76 billion is the biggest ever imposed for violating the Philippine Competition Act
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The group controlled nearly 50% of approved onion import clearances in 2020 and 2021
The Philippine Competition Commission (PCC) has found six firms and their responsible officers liable for taking part in an onion cartel that ran an illegal market allocation scheme covering the importation, cold storage and wholesale distribution of red and yellow (or white) onions. It fined them a combined P1.76 billion, the largest penalty on record under the Philippine Competition Act (PCA).
The PCC held the following liable for violating Section 14(b)(2) of the PCA:
- freight forwarder Golden Shine International Freight Forwarders Corp.
- cold storage operator Tian Long Corp.
- onion importers La Reina Fresh Vegetables & Young Indoor Plants, Inc., Yom Trading Corp., Vegefru Producing Store (Mark Castro Ocampo, sole proprietor) and Rosal Fruit and Vegetable Trading (Nancy Callanta Rosal, sole proprietor)
It also held accountable the officers of the first four firms: Lilia Cruz, president of Golden Shine; Eric Pabilona, corporate executive officer of Golden Shine and corporate secretary of Tian Long; Renato Francisco Jr., chairman and president of La Reina and Yom Trading; and Letty Baculando, incorporator of Golden Shine.
The Commission resolved the case on May 28, 2026. The case was brought by its Competition Enforcement Office (CEO), whose investigation began after retail onion prices surged to an unprecedented P800 a kilo in late 2022.
Evidence from a court-ordered dawn raid on September 6, 2023 at the respondents’ offices in Golden Shine Corporate Center was central to the case. The PCC said Golden Shine systematically applied for sanitary and phytosanitary import clearances using the other importers’ credentials, named the same importers as consignees, monitored permit allocations and coordinated shipments. By accumulating permits across separate companies, the respondents together controlled nearly 50% of all approved import clearances for red and yellow (or white) onions in 2020 and 2021. The shipments went to cold storage facilities managed under Tian Long, then were distributed nationwide.
The PCC found the importers’ audited financial statements grossly understated, so it computed the fines from actual import clearance volumes and wholesale prices reported by the Philippine Statistics Authority. Because onions are prime commodities, the PCA automatically trebles basic fines.
Five groups were each fined P330 million, with the respondents in each group solidarily liable: La Reina and Francisco; Yom Trading and Francisco; Ocampo of Vegefru; Rosal; and Golden Shine with Cruz, Pabilona and Baculando. Tian Long and Pabilona were ordered to pay P118.33 million on a solidary basis.
The PCC dismissed charges against Philippine Vieva Group of Companies, Inc. and Vegetable Importers, Exporters & Vendors Association of the Philippines, Inc. for insufficient evidence of their participation in the scheme.
PCC Executive Director Kenneth Tanate said: “By imposing the maximum fines, the PCC underscores its commitment to holding cartels accountable across all sectors of the economy and protecting consumers from the harmful effects of anti-competitive conduct.”
Individuals involved may also face criminal liability under Section 30 of the PCA, which carries prison terms and further fines when prosecuted by the Department of Justice – Office for Competition.
READ: Competition body charges onion importers, traders for cartel conduct
