ISLAMABAD – Two of Pakistan’s known cable manufacturers, GM Cables and Newage Cables, have been hit with massive as Competition Commission of Pakistan took action over price fixing.
These giants, long commanding their dealer networks, had quietly dictated minimum resale prices, leaving dealers little room to offer discounts. By controlling prices, they stifled competition and kept costs high for consumers. After uncovering internal circulars and contract clauses, the CCP launched a formal investigation, eventually hitting the companies with a combined Rs 265 million fine.
GM and Newage Cables were ordered to end their price-control practices and let dealers set prices freely, marking a rare win for market fairness and consumer choice.
According to the Commission’s detailed order, Newage Cables (Pvt.) Ltd. was fined Rs 75 million, while GM Cables & Pipes (Pvt.) Ltd. faces a staggering Rs 190.22 million. Both companies were found enforcing minimum resale prices, preventing dealers from offering discounts and stifling competitive pricing.
CCP examined evidence including company-issued circulars, which revealed that dealers risked losing their contracts if they sold below fixed discount limits.
A formal investigation under the Competition Act, 2010 confirmed that both companies had policies that effectively controlled retail pricing across their dealer networks, restricting intra-brand competition and keeping prices artificially high, ultimately harming consumers.
Newage Cables embedded these pricing restrictions directly into its dealership agreements, while GM Cables issued rate control notices to enforce similar rules. Both firms were served with show-cause notices, giving them a chance to respond. The CCP concluded that their actions clearly violated Section 4 of the law, which prohibits agreements that distort market competition.
As part of ruling, both firms have been ordered to immediately stop enforcing minimum resale prices, withdraw all related instructions, and allow dealers to independently set prices. Newage Cables must also remove all discount restrictions from its agreements. Compliance reports are required within the given timeframe.
CCP warned that if the penalties are not paid within 60 days, both companies will face an additional fine of Rs 500,000 per day until full compliance.
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