The Philippine Competition Commission (PCC) has imposed a record ₱1.76-billion penalty on six companies and several of their officers and proprietors for participating in an illegal onion market allocation scheme.
In its May 28, 2026 decision, the Commission found that the respondents violated the Philippine Competition Act through arrangements involving the importation, cold storage and wholesale distribution of red and yellow onions.
Those held liable include freight forwarder Golden Shine International Freight Forwarders Corp.; cold storage operator Tian Long Corp.; importers La Reina Fresh Vegetables & Young Indoor Plants, Inc. and Yom Trading Corp.; and the proprietors of Vegefru Producing Store and Rosal Fruit and Vegetable Trading.
The PCC also held several company officers accountable, including Lilia Cruz, Eric Pabilona, Renato Francisco Jr. and Letty Baculando.
INVESTIGATION UNCOVERS IMPORT SCHEME
The investigation began following the onion price crisis in late 2022, when retail prices reached as high as ₱800 per kilogram.
Evidence recovered during a court-authorized raid in September 2023 showed that Golden Shine used the credentials of other importer-respondents to apply for import clearances, monitor permit allocations and coordinate shipments, according to the PCC.
The arrangement allowed the companies to collectively control nearly 50% of approved import clearances for red and yellow onions in 2020 and 2021. Imported shipments were then routed to cold storage facilities managed by Tian Long before being distributed nationwide.
POSSIBLE CRIMINAL CHARGES
The Commission imposed penalties of ₱330 million on several respondent groups and ₱118.33 million on Tian Long and Pabilona. The fines were calculated using import volumes and wholesale prices reported by the Philippine Statistics Authority, with penalties tripled because onions are classified as a prime commodity.
Charges against Philippine Vieva Group of Companies, Inc. and the Vegetable Importers, Exporters & Vendors Association of the Philippines, Inc. were dismissed for insufficient evidence of their participation in the scheme.
PCC Executive Director Kenneth Tanate said the penalties demonstrate the agency's commitment to holding cartels accountable and protecting consumers from anti-competitive practices.
The Commission added that individuals involved could also face criminal prosecution under the Philippine Competition Act through the Department of Justice's Office for Competition.
