12 unscrupulous onion importers, traders to face raps —PCC

Charges will be filed against 12 onion importers and traders engaged in anti-competitive practices, the Philippine Competition Commission (PCC) said.

The filing of charges is in response to the directive of President Ferdinand Marcos Jr., the PCC said, according to a press release issued by the Presidential Communications Office on Sunday.

The PCC said the 12 companies and individuals engaged in onion importation and trading violated the Philippine Competition Act (PCA).

The companies and individuals agreed to allocate the supply of onions in the country, the PCC said.

However, "the respondents assigned among themselves sanitary and phytosanitary import clearances (SPSIC) issued by the Department of Agriculture-Bureau of Plant Industry (DA-BPI) and distributed the volume of onion allowed for importation," the PCO said, quoting PCC.

This led to majority of the volume of onions imported into the Philippines being effectively controlled by the respondents, the PCC added.

“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," it added.

This resulted in the importers and traders not competing with each other and failing to independently decide on their policies.

“Such an agreement has the object of restriction or distortion of competition and has inherent restrictive effects upon competition,” the PCC said.

A total fine of P2.4 billion has been recommended to be imposed on the respondents.

Marcos earlier directed the PCC and other government agencies to go after smugglers, hoarders and those engaged in anti-competitive practices. —KG, GMA Integrated News