P1.76 Billion: The PCC Has Slapped an Onion Cartel with the Largest Ever Fine in its History

The Philippine Competition Commission (PCC) has imposed a combined P1.76-billion fine on six firms and their responsible officers for participating in an onion cartel, marking the largest penalty the agency has handed down to date for violations of the Philippine Competition Act.

According to a news release, the decision follows an investigation launched after onion prices soared to an unprecedented P800 per kilo in late 2022. The PCC found that the respondents engaged in an illegal market allocation scheme involving the importation, cold storage, and wholesale distribution of red and yellow, or white, onions.

The Commission resolved the administrative case on May 28, 2026, following proceedings brought by its Competition Enforcement Office (CEO). The respondents were found liable for violating Section 14(b)(2) of the Philippine Competition Act, which prohibits agreements between or among competitors to divide or allocate markets for goods or services.

The firms named in the decision were freight forwarder Golden Shine International Freight Forwarders Corp.; cold storage operator Tian Long Corp.; onion importers La Reina Fresh Vegetables & Young Indoor Plants Inc. and Yom Trading Corp.; Mark Castro Ocampo, sole proprietor of Vegefru Producing Store; and Nancy Callanta Rosal, sole proprietor of Rosal Fruit and Vegetable Trading.

The PCC also held responsible officers of the first four companies liable: Lilia Cruz, president of Golden Shine; Eric Pabilona, Golden Shine's corporate executive officer and Tian Long's corporate secretary; Renato Francisco Jr., chairman and president of both La Reina and Yom Trading; and Letty Baculando, an incorporator of Golden Shine.

A key part of the Commission's case was evidence obtained during a court-ordered dawn raid conducted by the CEO on September 6, 2023, at the respondents' offices in Golden Shine Corporate Center.

According to the PCC's findings, Golden Shine systematically applied for sanitary and phytosanitary import clearances using the credentials of the other importer-respondents. The company also assigned the same importers as consignees, monitored permit allocations, and coordinated shipments.

By accumulating import clearances across separate corporate entities, the respondents collectively controlled nearly 50 percent of all approved clearances for red and yellow, or white, onions in 2020 and 2021, the Commission said.

Imported shipments were routed to cold storage facilities managed under Tian Long before the onions were distributed nationwide. The arrangement, as established by the PCC, constituted an illegal market allocation scheme in a market for a staple commodity whose prices can have a significant effect on household budgets.

The combined P1.76-billion penalty is the largest imposed by the PCC for violations of the Philippine Competition Act so far.

The Commission said it computed the fines using actual import clearance volumes and wholesale prices reported by the Philippine Statistics Authority after finding that the importers' submitted audited financial statements were grossly understated.

Onions are classified as prime commodities. Under the Competition Act, this classification triggers the automatic trebling of basic fines.

Ordered to pay P330 million each were La Reina and Francisco Jr.; Yom Trading and Francisco Jr.; Ocampo, as proprietor of Vegefru Producing Store; Rosal, as proprietor of Rosal Fruit and Vegetable Trading; and Golden Shine, Cruz, Pabilona, and Baculando. Respondents within each group are held solidarily liable, meaning they share responsibility for payment of the respective fine.

Tian Long and Pabilona were separately ordered to pay P118.33 million, also on a solidary basis.

Meanwhile, the PCC dismissed charges against Philippine Vieva Group of Companies Inc. and the Vegetable Importers, Exporters & Vendors Association of the Philippines Inc. due to insufficient evidence of their participation in the market allocation agreement. However, certain officers and incorporators associated with those entities—including Cruz, Pabilona, Francisco Jr., and Baculando—were held liable in their capacities as officers and owners of firms found to have violated the law.

“By imposing the maximum fines, the PCC underscores its commitment to holding cartels accountable across all sectors of the economy and protecting consumers from the harmful effects of anti-competitive conduct,” PCC Executive Director Kenneth Tanate said.

Created under the Philippine Competition Act, or Republic Act No. 10667, the PCC is the country's independent competition authority. Its mandate is to promote and maintain fair market competition by investigating and penalizing anti-competitive agreements and conduct, reviewing mergers and acquisitions that may substantially lessen competition, and preventing the abuse of market dominance. The onion case highlights the Commission's role in scrutinizing market arrangements that may restrict competition, particularly in essential goods.

The administrative penalties are separate from possible criminal proceedings. Under Section 30 of the Competition Act, individuals involved in cartel activities may also face imprisonment and additional fines for violations of Section 14(a) and (b), following prosecution by the Department of Justice's Office for Competition.