Filtered By: Topstories
News

DOJ files first ever 'cartel case' in PHL vs party-list solon, 8 others


In what seems to be a first in the Philippine justice system, the Department of Justice (DOJ) has recommended the filing of charges against party-list Rep. Arnel Ty and other people for violating the Oil Deregulation Law of 1998, when they engaged in alleged oil price fixing. Apart from Ty, who at the time was president of the LPG Marketers Association (LPGMA), also ordered charged were: Danilo Chua, Alison Sy, Rene Rosell, Ronnie Sevillana, Mar Dave Tang, Virginia Cid, Bonifacio Eleria and Antonio del Rosario. The case stemmed from the complaint filed by Jesus Arranza, chairman of the Federation of Philippine Industries, on October 22, 2010, alleging that the announcement of the LPGMA – through Ty as quoted in several media reports – of a uniform selling price of LPG was "tantamount to cartelization." "The respondents clearly agreed to fix the price of their LPG products. This is evidenced by the fact that the LPGMA members have unanimously consented to the declarations made by respondent Ty, as their president, announcing the price rollback of their products," according to the resolution penned by Prosecutor Cesar Angelo Chavez III and approved by Prosecutor General Claro Arellano. The DOJ said the respondents engaged in a "cartel" since the LPGMA's move was "effectively a restraint on trade and free competition," in violation of Section 11 of Republic Act 8479 or the Oil Deregulation Law of 1998. The prosecutor also recommended the filing of charges for violation of Article 186, Paragraph 1, of the Revised Penal Code. The prosecutor also recommended the filing of charges for violation of Article 186, Paragraph 1, of the Revised Penal Code.The DOJ said Ty's announcement in the media of their price rollback was a form of "price signalling... to dictate LPG prices on their competitors." LPGMA's side In its counter-affidavit, the respondents claimed that the DOJ does not have jurisdiction over the case because it should have been filed with the joint DOJ-Department of Energy Task Force, which is tasked to investigate oil-related cases. The respondents also insisted that the LPGMA is a group that "share a common interest... and [does not have] price fixing as one of its purposes." Ty's group also said that oil price rollbacks, anyway, are not detrimental to public consumers. The respondents also claimed Ty made the announcement as president of his own LPG firm and not as LPGMA president. They also said Ty's oil price rollback announcement and those made by other LPG dealers were mere "coincidences" and were not preceded by any meeting. "The LPGMA members' decision to cut LPG prices was reached independent of the other members given the prevailing market condition," the respondents said. Respondents Tang and Sevillana, meanwhile, said they should not have been charged because they were no longer LPGMA members when Ty made the price rollback announcement in the media. "The announcements of LPG price rollback in news report are not in restraint of trade or competition because it is made for the benefit of consumers," the two said. Findings Chavez, in his resolution, insisted that the DOJ has jurisdiction over the case, and added: "We find sufficient ground to engender well-founded belief that the respondents committed the crime charged." The DOJ said the series of price rollbacks by the LPGMA "presupposes a round of increases that were not publicly announced in a similar manner." The Justice department also said the element of benefit or harm should not be taken into consideration in this case. "What if effectively proscribed and penalized, is the act of restraining trade by fixing prices," the DOJ said. — LBG, GMA News

LOADING CONTENT