Breaking The Habit

Whistleblowers Exposing Price Fixing to Receive Immunity

The days of price fixers and cartels in the Philippines are now numbered. The government has promised to grant immunity to those who will report on business practices that undermine competition.

With the worsening food inflation in the country, the Philippine Competition Commission will establish a leniency program for whistleblowers to help combat the problem of businesses colluding to raise food prices.

The draft released by the PCC says that companies or people involved in practices including price fixing, collusion, and any anti-competitive deal will receive immunity and reduction of fines “in exchange for the voluntary disclosure of information regarding such agreement.”

In order to be considered for the program, applicants will have to stop first in participating in such practices and then provide information and evidence on those who are involved.

Philippine Competition Commission

The PCC has been scrutinizing deals since its inception in 2016, and this is one of the most recent tools that will help the commission do its job.

This year alone, the PCC issued a P16-M fine to both Grab and Uber for continuing the merger in the midst of an antitrust review. SM Investments, on the other hand, faced intimidating post-transaction requirements from the regulator in acquiring local bakery chain Goldilocks Bakeshop, making the company settle for a minority stake. PCC also took San Miguel to court because of the latter’s sale of wireless spectrum to PLDT and Globe Telecom.

Senator Cynthia Villar pinned some of the blame on cartels for the country’s skyrocketing prices of rice. With the aid of whistleblowers and PCC’s leniency program, this can be prevented.

According to the Philippine Competition Act of 2015, guilty parties that participate in anti-competitive practices can be fined with up to 250 million pesos and face imprisonment of up to seven years.

via Nikkei / Cliff Venzon

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