ISLAMABAD (Web Desk) – The Competition Commission of Pakistan (CCP) has imposed a combined penalty of Rs 265.22 million on two major cable firms, Newage Cables (Pvt.) Ltd. and GM Cables & Pipes (Pvt.) Ltd., for engaging in Resale Price Maintenance (RPM) practices in violation of Section 4 of the Competition Act, 2010.
The Commission’s enquiry, supported by documentary evidence including internal circulars, revealed that both firms restricted dealers from offering discounts beyond prescribed limits and enforced compliance through threats of dealership termination. This conduct was found to restrict intra-brand price competition, adversely affecting consumer choice.
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After issuing show-cause notices and conducting hearings, CCP concluded that Newage Cables and GM Cables had engaged in vertical agreements establishing minimum resale prices. While Newage demonstrated cooperation during proceedings, GM Cables continued infringing practices and challenged documented evidence.
Accordingly, CCP imposed a penalty of Rs 75 million on Newage Cables and Rs 190.22 million (5% of FY 2023–24 turnover) on GM Cables & Pipes. The companies have been directed to pay the penalties within 60 days, failing which an additional Rs 500,000 per day will accrue.
The Commission also ordered both firms to immediately cease imposing minimum resale price restrictions, withdraw all such dealer instructions, ensure independent pricing, and submit compliance reports. Newage Cables has been specifically instructed to remove discount cap provisions from its dealership agreements.
This decisive action underscores CCP’s commitment to protecting consumers, promoting fair competition, and deterring anti-competitive practices in Pakistan’s markets.
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