The Department of Trade and Industry (DTI) has started its own investigation over the unfair trade practices of Century Pacific Group, as alleged by CDO-Foodsphere Inc., to suppress competition and retain its monopoly over the P6-billion canned tuna market.

Trade Secretary Peter Favila said he will call the two concerned tuna canners to present their respective positions on the issue. “We will try to resolve the issue,” Favila said.

The DTI, through its consumer welfare and protection unit, will look into the allegations of CDO-Foodsphere, maker of new brand San Marino Corned Tuna.

“The formal investigation have yet to start” Favila said.

In a complaint letter dated October 30, 2009 signed by lawyer Raymond Fortun, CDO Foodsphere accused the Century Pacific Group of blocking the entry into the local market of its new canned tuna product, the San Marino Corned Tuna, not only in the areas of Metro Manila area, but also in the different provinces of Luzon, Visayas, and Mindanao.

The Century Pacific Group is controlled by the family of Chinese businessman Ricardo Po.

“Its dominance in the industry is partly attributable to the unfair trade practices it engages in, which includes restricting the production supply of canned tuna in the local market and convincing retailers to enter into so-called “voluntary loyalty programs” which is, in essence, agreements to lock-out competitors.” Fortun said in the complaint letter.

Fortun said DTI has enough powers to protect the consumers against unfair trade practices and ensure stable supply and prices of basic necessities by providing a level playing field for manufacturers, suppliers and distributors.

“We seek relief from you, as the office vested by the law to enforce the different trade and industry laws in the country, pursuant to the policy enunciated under Section 19, Article XII of the 1987 Constitution,” Fortun said.

“It is for this reason that we are humbly requesting your good office to look into the matter with scrutiny and to investigate the P6-billion canned tuna industry in the Philippines, 99 percent of which is being monopolized by the Century Pacific Group,” Fortun said.

Foodsphere noted that the Century Pacific Group produces the Century, 555 and Fresca canned tuna brands. It has bought out its competitor BlueBay Tuna from RFM, to retain its dominating market share.