The Competition Commission of Pakistan (CCP) has imposed heavy fines on two major cable manufacturers, GM Cables and Newage Cables, over price-fixing practices.
The companies were found to have dictated minimum resale prices to their dealers, restricting discounts and controlling the market. This price-fixing limited competition and kept consumer costs high.
After reviewing internal circulars and dealership agreements, the CCP launched a formal investigation under the Competition Act, 2010. The probe revealed that dealers risked losing contracts if they offered lower prices than the fixed limits set by the companies.
Newage Cables (Pvt.) Ltd. was fined Rs 75 million, while GM Cables & Pipes (Pvt.) Ltd. received a Rs 190.22 million penalty. Both firms were ordered to stop price-fixing practices immediately and allow dealers to set prices independently.
The CCP confirmed that Newage Cables had embedded pricing restrictions directly into its agreements. GM Cables had issued notices enforcing similar rate controls across its dealer network. These actions violated Section 4 of the Competition Act, which prohibits agreements that distort market competition.
Both companies were served show-cause notices, giving them an opportunity to respond. The Commission concluded that their policies had restricted intra-brand competition and harmed consumers.
As part of the ruling, Newage Cables must remove all discount restrictions from its agreements. Both firms are required to submit compliance reports within the stipulated timeframe. The CCP warned that failure to pay fines within 60 days will result in additional penalties of Rs 500,000 per day until full compliance.
Industry experts say this decision sets a strong precedent against price-fixing in Pakistan. The ruling reinforces fair competition, protects consumer interests, and ensures that dealers can now determine their pricing freely.
The CCP emphasized that the action is part of ongoing efforts to maintain market fairness and prevent monopolistic practices. The fines signal that companies engaging in price-fixing will face strict legal and financial consequences.
This move is expected to benefit consumers with better pricing options while encouraging healthy competition in the cable manufacturing sector.
In other news read more about: CCP Issues Advisory On Restrictive Agreements
