MANILA, Philippines — The Philippine Competition Commission (PCC) has imposed a record fine of P1.76 billion on six firms whose activities as an onion cartel sent retail prices soaring to as high as P800 a kilo in 2022.
At a press conference yesterday, PCC executive director Kenneth Tanate said the fine was imposed on the six firms and their officers for their involvement in an illegal market allocation scheme in the importation, cold storage and wholesale distribution of onions.
The scheme allowed the firms to control nearly 50 percent of all import clearances for onions.
The PCC issued its decision on Oct.1. The firms have until today to pay the fine.
“The members of the cartel were fined a total of P1.76 billion, representing the biggest amount imposed so far by the Philippine Competition Act (PCA) on violators of the law,” he said.
As onion is classified as a prime commodity, he said the PCA mandates automatic trebling or tripling the penalty.
Fined were freight forwarder Golden Shine International Freight Forwarders Corp., cold storage operator Tian Long Corp., and onion importers La Reina Fresh Vegetables & Young Indoor Plants Inc. and Yom Trading Corp.
Also penalized were Mark Castro Ocampo as sole proprietor of Vegefru Producing Store, Nancy Callanta Rosal as sole proprietor of Rosal Fruit and Vegetable Trading, Golden Shine president Lilia Cruz, Golden Shine corporate executive officer and Tian Long corporate secretary Eric Pabilona, La Reina and Yom Trading chairman and president Renato Francisco Jr., and Golden Shine incorporator Letty Baculando.
The PCC’s decision stemmed from an investigation on surge in onion prices to as high as P800 a kilo in late 2022.
Evidence retrieved during a court-ordered dawn raid conducted in September 2023 revealed how the cartel operated. Base on investigation, Golden Shine applied for import clearances using the other importers’ credentials and assigned the same importers as consignees. Imports were routed to Tian Long’s cold storage facilities and then distributed nationwide.
Tanate said the firms may file a motion for reconsideration.
The fines were calculated using actual import clearance volumes and wholesale prices reported by the Philippine Statistics Authority as the firms understated financial performance.
“By imposing the maximum fines, the PCC underscores its commitment to holding cartels accountable across all sectors of the economy and protecting consumers from the harmful effects of anti-competitive conduct,” Tanate said.
Aside from imposing administrative penalties, the PCC may recommend a criminal case before the Department of Justice.