ISLAMABAD – Cable giants dictated prices their dealers could offer, leaving little room for discounts and keeping consumers paying more than they should, and the secret pricing control was detected by authortiies who now imposed Rs265 million fine.
After uncovering internal circulars and contract clauses, Competition Commission of Pakistan (CCP) launched a full investigation, and ended up slapping Rs 265 million fine on GM Cables & Pipes (Pvt.) Ltd. and Newage Cables (Pvt.) Ltd.
Investigations revealed that both companies had been secretly enforcing minimum resale prices across their dealer networks, leaving retailers no room to offer discounts. Dealers risked losing contracts if they dared to sell below the fixed limits, keeping prices artificially high and hurting consumers nationwide.
According to the CCP’s detailed order, Newage Cables was slapped with a Rs 75 million fine, while GM Cables faced a staggering Rs 190.22 million penalty. The probe uncovered internal circulars, dealership agreements, and rate control notices showing clear evidence of price manipulation.
Commission ruled that these practices violated Section 4 of the Competition Act, 2010, which prohibits agreements that distort market competition. Both companies have been ordered to immediately stop enforcing minimum resale prices, withdraw all related instructions, and allow dealers to independently set their prices. Newage Cables must also remove all discount restrictions from its agreements.
CCP warned that non-compliance will trigger an additional fine of Rs 500,000 per day after 60 days until the full amount is paid. The ruling marks a rare win for consumer rights and fair market practices in Pakistan, signaling that even industry giants are not above the law.
