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Manila Bulletin devider Business devider PCC joins onion 'cartel' probe

PCC joins onion 'cartel' probe

Published Feb 16, 2023 06:21 pm

The Philippine Competition Commission (PCC) has joined the probe on the unusual high prices of onion for possible cartel or abuse of dominance conduct.

In a statement, the anti-trust watchdog said their investigation started in December last year is consistent with the probe prompted by House Speaker Cong. Martin G. Romualdez and House Resolution No. 681 filed by Cong. Stella A. Quimbo.

The PCC launched its market assessment as the onion retail prices have been observed at unusual high range and peaked at P600/kilo in December 2022.

As prices are seen to stabilize due to the imports and the SRP set last Feb. 6, the PCC is looking into the cause of such market anomaly in coordination with the sector regulators and other law enforcement agencies.

Under the Philippine Competition Act (PCA), businesses who will be found to have taken advantage of the situation may be fined up to P100 million, and even face jail time of up to seven years.

The fines may even be tripled if trade of basic necessities, including agricultural products identified by the Price Act, are involved in cartel or abuse of dominance violations, the PCC said.

Prices of onions in the country remained high despite the setting up of suggested retail price by the Department of Agriculture at P125 per kilo for imported red onions in Metro Manila.

According to the PCC Enforcement team, the onion probe is still in the market assessment stage or fact-finding stage.

Complaints referred by other government agencies to the PCC evolves into a motu propio investigation by the PCC, while the verified complaints come from individual filing.

In August 2017, the PCC launched its motu propio investigation into the alleged cartel controlling the garlic industry. The probe was triggered by the letter from Senator Cynthia Villar.

Related Tags

Philippine Competition Commission (PCC) Onion cartel
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