In response to President Marcos' directive to go after smugglers and hoarders, the Philippine Competition Commission (PCC) will be filing a case against 12 onion importers and traders engaged in anti-competitive practices.

In a memorandum for President Marcos coursed through Executive Secretary Lucas Bersamin, the PCC said the companies and individuals engaged in onion importation and trading violated the Philippine Competition Act.

The PCC Enforcement Office recommended a total fine of P2.4 billion against the violators.

Based on the PCC Enforcement Office's probe, the respondents agreed to allocate the supply of onions in the country.

It said evidence showed the respondents assigned among themselves sanitary and phytosanitary import clearances (SPSIC) issued by the Department of Agriculture-Bureau of Plant Industry (DA-BPI) 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," the PCC's memorandum dated Aug. 13 read.

"This is an anti-competitive agreement penalized under Section 14(b)(2) of the PCA," it added.

According to the PCC, the respondents "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 said.

With such a scheme, the PCC said the importers and traders avoided competing with each other and failed to independently decide on their policies and substituted the risk of competition with cooperation.

"Such an agreement has the object of restriction or distortion of competition and has inherent restrictive effects upon competition," it said.

Under SONA Directive No. PBBM-2023-021, President Marcos ordered the PCC and other government agencies to pursue the filing of cases against smugglers, hoarders, and those engaged in anti-competitive practices.