Philippines: cement sector faces full proceedings on anti-competitive practices

The Philippine Competition Commission (PCC) is set to up its investigation of alleged violations of competitive practices in the local cement industry.

The country's anti-trust authority said it found reasonable grounds to proceed to a full administrative investigation into the cement industry. The investigation is in response to the affidavit-complaint filed before the commission by Victorio Dimagiba, a former trade undersecretary who now serves as president of consumer advocacy group Laban Konsyumer Inc.

"The commission conducted a preliminary inquiry of the allegations in your affidavit-complaint. It found reasonable grounds to proceed to a full administrative investigation on the cement industry for possible violations of Sections 14 and 15 of the Philippine Competition Act. We hope for your continued cooperation in the investigation," the PCC said in response to Mr Dimagiba’s complaint filed in August last year.

In his affidavit complaint, Mr Dimagiba said the Cement Manufacturers Association of the Philippines (CeMAP), led by its President, Ernesto Ordonez, LafargeHolcim Philippines Inc and Republic Cement (CRH-Aboitiz) and Building Materials Inc violated the provisions of the Philippine Competition Act by engaging in anti-competitive agreements.

Such anti-competitive agreements include "restricting competition as to price or components thereof or other terms of trade, abusing their dominant position by engaging in conduct that substantially prevent, restrict, or lessen competition, imposing barriers to entry, or committing acts that prevent competitors from growing within the market."