DAVAO CITY (PIA) — The Philippine Competition Commission (PCC) has strengthened its presence in Davao Region with the opening of its third national investigation station (iStation) in Davao City. Among its effects would be helping the prevention of the emergence of rice cartels and checking abusive dominance in the region.
According to PCC chair Michael G. Aguinaldo, the hike in rice prices is one of the things being closely monitored by the PCC, where they study the trends in the spike in prices.
“PCC’s jurisdiction would apply to instances specific to these types of commodities. One would be if there are anti-competitive agreements, usually among competitors.Usually, nag-uusap sila oh ganito presyo natin or eto lang ilalabas natin (they would talk that this is our price or these are the amounts we would release ) that’s the closest thing to probably say na cartels siguro ito (these are cartels),” Aguinaldo said.
The PCC will also maintain close monitoring of instances of “abuse of dominance” which happens when a company or entity with a significant power in the market engages in conduct that substantially prevents, lessens or restricts competition.
“In fact, we have an ongoing case where a rice miller is actually forcing farmers to sell at really low prices, it just happens that the rice miller is the dominant miller in the area so the farmers have no choice kung saan pwede ibenta,” Aguinaldo said.
He said the PCC together with the Department of Trade and Industry and the Department of Agriculture are working to follow the directive of President Ferdinand “Bongbong” Marcos Jr. in keeping a close watch on rice cartels and taking measures against it.
Under Executive Order 39 series of 2023 which imposes a mandated price ceiling on rice, the PCC in coordination with DTI and DA, is tasked to take measures against cartels or those abusing dominant position in the market to ensure fair market competition and uphold consumer welfare and protection.
“But so far sa mga case against cartels wala pa tayo doon, we’re still looking into it,” the PCC chair said during a press conference with the Davao media on September 20.
According to Aguinaldo, though they have yet to see a rice cartel-induced price hike, what they have seen, based on their present case in Luzon, is localized abusive dominance in a particular geographic location.
PCC Chairperson Michael G. Aguinaldo (center) with Commissioner Atty Michael Peloton (left) and Executive Director Kenneth Tanate (right) during the press conference in Davao City
“It (nationwide rice cartels) is something that has to be investigated carefully because rice is produced I think in all provinces in the Philippines it is difficult to control the supply in that sense but again you also have importations so that could possibly be another source but we will have to look carefully that cartels are actually acting,” Aguinaldo said.
The PCC is a newly constituted independent quasi-judicial body mandated to implement the national competition policy and enforce Republic Act 10667 or the Philippine Competition Act which promotes and protects market competition.
A fair and just market competition protects consumers by giving them access to a wider choice of goods and services at lower prices, promotes competitive businesses, and encourages market players to be more efficient and innovative. These also benefit micro, small, and medium enterprises.
The PCC’s Davao iStation will serve as the PCC’s temporary workstation in the region for facilitating the conduct of investigations and the promotion of pro-competition policies among local businesses, consumer groups, and other stakeholders until the launch of a permanent regional PCC office. (RGA/PIA Davao)
