THE Philippine Competition Commission (PCC) is set to file charges against 12 onion importers and traders engaged in anti-competitive practices.
In a memorandum to President Ferdinand Marcos Jr., the PCC reported that based on investigation, 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.
The PCC said this means 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.
It said such an agreement has the object of restricting or distorting competition and has inherent restrictive effects upon competition.
“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.
The Enforcement Office has recommended a total fine of P2.4 billion against the violators.
Marcos earlier instructed the PCC and other government agencies to pursue the filing of cases against smugglers, hoarders, and those engaged in anti-competitive practices. (TPM/SunStar Philippines)