The Philippine Competition Commission (PCC) is preparing to initiate legal action against a group of 12 onion importers and traders for engaging in practices that undermine competitive market conditions. These entities are accused of orchestrating an agreement to assign among themselves sanitary and phytosanitary import clearances (SPSICs) provided by the Department of Agriculture-Bureau of Plant Industry (DA-BPI), thereby controlling the distribution of imported onion volumes within the Philippines.
This arrangement allowed the implicated parties to circumvent market competition by agreeing not to compete against each other, essentially replacing the competitive market environment with a cooperative stance that restricted independent policy decisions. The PCC has identified such actions as inherently anti-competitive, highlighting their potential to significantly distort market competition by controlling over half of the country's onion import volume during the assessed period.
Furthermore, the PCC's findings indicate that these respondents also engaged in collusion to dampen competition further by sharing sensitive business information among themselves, including pricing, suppliers, customer details, volumes, and logistics related to shipping, distribution, and storage. Such practices are in direct violation of Section 14(b)(2) of the Philippine Competition Act (PCA), warranting a recommended total fine of P2.4 billion against the entities involved.
In line with directives from President Ferdinand Marcos Jr., the PCC, alongside other government bodies, is set to pursue legal actions against those implicated in smuggling, hoarding, and anti-competitive behaviors, aiming to safeguard market fairness and consumer interests.
Source: Sun Star