12 onion importers face raps

MANILA, Philippines — The Philippine Competition Commission (PCC) is filing a case against 12 onion importers and traders for engaging in anti-competitive practices, Malacañang announced yesterday.

Citing a PCC memorandum for President Marcos, the Presidential Communications Office (PCO) said the 12 companies and persons colluded to lessen competition in the market.

“Based on the investigation conducted by PCC’s enforcement office, the respondents agreed to allocate the supply of onions in the country,” the PCO said in a statement.

Evidence, according to the PCC, showed the traders and importers assigned among themselves sanitary and phytosanitary import clearances (SPICs) issued by the Department of Agriculture-Bureau of Plant Industry and distributed the volume of onion allowed for importation.

“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 (Philippine Competition Act),” the commission said in a memorandum dated Aug. 13 and coursed through Executive Secretary Lucas Bersamin.

“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 PCO statement did not identify the persons and companies to be charged for violating the Philippine Competition Act.

The PCC said the importers and traders avoided competing with each other, failed to independently decide on their policies and “substituted the risk of competition with cooperation.” The agreement has the object of “restriction or distortion of competition” and has inherent restrictive effects upon competition, which is penalized under Section 14 of the competition law, the commission added.

The PCC’s enforcement office recommended the imposition of a P2.4-billion fine against the traders and importers.

During his State of the Nation Address last year, Marcos warned hoarders and smugglers of farm goods that their days are numbered.

He gave an assurance that cases would be filed against smugglers, hoarders and those engaged in anti-competitive practices, saying their actions are affecting farmers and consumers.