The Philippine Competition Commission (PCC) has fined six companies 1.76 billion pesos ($27.9 million) for allegedly colluding to control onion imports, storage and wholesale distribution during a period of sharp price increases.
The regulator announced the penalty on Wednesday, describing it as the largest fine imposed since the commission was established in 2016.
The companies, comprising onion importers and firms involved in storage and shipping, were found to have participated in what the commission described as an illegal market allocation scheme affecting the onion supply chain.
According to the PCC, evidence obtained during raids on the companies showed that the six firms collectively controlled nearly 50 per cent of approved onion import clearances in 2020 and 2021.
The commission said the alleged arrangement covered onion imports, cold storage and wholesale distribution, raising concerns about competition in a market supplying a staple food to millions of Filipinos.
The case follows a price crisis in 2022, when the cost of onions reached a record 800 pesos per kilogram, exceeding the country’s daily minimum wage and surpassing the price of meat.
The shortage triggered public concern, with some restaurants removing onions from their menus and reports emerging of attempts to smuggle the vegetable. The crisis also prompted the government to authorise emergency imports to increase supply.
President Ferdinand Marcos Jr, who had pledged to tackle rising food prices after taking office, vowed to pursue those responsible for the shortage.
Prices stabilised in 2023 after a substantial domestic harvest reached the market. A parliamentary committee investigating the crisis subsequently concluded that cartel activity had contributed to an artificial increase in prices.
In announcing the sanctions, the PCC said the penalty reflected its commitment to holding businesses accountable for anti-competitive conduct and protecting consumers from practices that distort markets.
The commission further warned that the companies could face criminal prosecution by the Department of Justice, depending on the outcome of further proceedings.
