MANILA, Philippines - The Philippine Competition Commission (PCC) will look into the proposal of the Department of Trade and Industry (DTI) to give companies the freedom to decide on the pricing and necessary cost adjustments of basic necessities and prime commodities.
“Of course there may be a potential competition concern but we have to study it closely. If there are only few players, the mere fact that you will let them agree on the prices can potentially create cartel or collusion,” PCC chairman Arsenio Balisacan said.
“It is too early for me to say (if we are support this proposal or not) because I want to study it closely first. It depends on how exactly it is done and how it is enforced,” Balisacan added.
Trade Secretary Ramon Lopez last week said he wants his agency to keep its hands off in the approval and adjustments of suggested retail price (SRP) for basic necessities and prime commodities to reduce bureaucracy.
Lopez, however, assured consumers the DTI will continue to monitor prices and will give more attention to industries where there are not many players to avoid price abuse or collusion.
The trade chief pointed out companies selling basic necessities and prime commodities are in fact afraid to increase prices in fear of losing market share to another brand.
He said most of them—particularly those producing fast-moving consumer goods—are actually selling at a much cheaper price just to get the loyalty of consumers.
The SRPs of basic necessities and prime commodities are currently set by manufacturers but are subject to evaluation as to its reasonableness by the DTI. Any intent to adjust SRPs also require approval from the agency.
“So we will study how they compile data and how they enforce it,” Balisacan said, referring to the DTI’s proposal.
The PCC chief said the antitrust authority is also looking for more ways on how to coordinate and collaborate with the DTI and its attached agencies in further promoting competition in the Philippine market.