Workers unload bags of red onions inside a storage area in Divisoria market in Manila on August 18, 2022. George Calvelo, ABS-CBN News/File

MANILA — The Philippine Competition Commission (PCC) announced Thursday that it filed complaints against 12 onion traders for behaving like a "cartel," which "harmed consumers and the economy in general."

• Antitrust watchdog probes possible onion cartel

The anti-trust watchdog has been investigating the alleged existence of onion cartels since 2022 after prices of onions surged to as high as P700 per kilo.

• 'Economic sabotage': Marcos orders probe on onion 'cartel'

In a press conference on Thursday, representatives of the PCC Enforcement Office said the traders entered into "anti competitive agreements" for the supply of imported onions from 2019 to 2023.

The traders allegedly worked together to control prices and limit competition. 

PCC representatives said this was the first time they filed charges against a "cartel" for violation of the Philippine Competition Act, particularly on Market Allocation and Anti-Competitive Exchange of Business Information.

To strengthen its evidence, PCC Enforcement Office conducted dawn raids to investigate emails and other proof that would support the cartel-like behavior of the traders.

"Nakita namin na entities involved nag-uusap-usap sa emails and exchange of information sa kung sino ang supplier at kelan paparating ang shipment," said Atty. Christian Loren Delos Santos, director of PCC Enforcement Office.

(We saw entities involved they were talking via email about suppliers and the arrival of shipment.)

Asked if the 'cartel' was responsible for the skyrocketing onion prices in late 2022 to early 2023, Atty. Christian Delos Santos of the PCC Enforcement Office said the cartel likely contributed to the price spike.

"Hindi ma-attribute sa kanila pero nakapag-contribute kasi kapag may cartel, may manipulation of supply," Delos Santos said.

(We cannot totally attribute it to them, but they definitely contributed because if there is a cartel, there is a manipulation of supply.) 

BAN ON IMPORT

The Bureau of Plant Industry said the 12 onion traders would be banned from applying for import clearances.

Importation of white onions is ongoing as supply is already depleting.

In January 2023, the price of red onions spiked to as high as P700 per kilo due to supply problems.

Last year, President Ferdinand Marcos Jr. also ordered an investigation into the hoarding, smuggling, and price fixing of onions and other agricultural products, calling such acts "economic sabotage."

• 'Onion cartel' may face economic sabotage case: DOJ

Republic Act 10845 or the Anti-Agricultural Smuggling Act of 2016 considers large-scale agricultural smuggling as economic sabotage.

Last August, both the Senate and the House of Representatives passed the proposed "Anti-Agricultural Economic Sabotage Act."