Philippine Antitrust Watchdog Fines Onion Cartel 1.76 Billion Pesos

The Philippine Competition Commission imposed a record fine of 1.76 billion pesos (US$28 million) on six firms and their officers for operating an illegal onion cartel. The antitrust watchdog determined that the group executed a market allocation scheme covering the importation, cold storage, and wholesale distribution of red, yellow, and white onions.

Investigation findings revealed the cartel used multiple corporate entities to accumulate import clearances, allowing them to control nearly 50% of all red and yellow onion import permits during 2020 and 2021. This manipulation contributed to a severe price surge in late 2022, during which onion prices reached 800 pesos per kilo, exceeding the cost of beef and chicken and increasing national inflation.

The commission warned that the individuals involved may face additional criminal liability and prison terms under the competition act. Executive Director Kenneth Tanate stated that the maximum fines demonstrate the agency's commitment to holding cartels accountable across all economic sectors to protect consumers from anti-competitive conduct.