The Competition Commission of Pakistan has taken strict action against anti-competitive practices, imposing a hefty combined fine of Rs. 265 million on two local cable manufacturers for engaging in price-fixing activities.
The penalties were issued to Newage Cables (Pvt.) Ltd., fined Rs. 75 million, and GM Cables & Pipes (Pvt.) Ltd., which received a significantly larger penalty of Rs. 190.22 million. The decision underscores the regulator’s continued focus on maintaining fair competition in Pakistan’s markets.
According to findings, both companies were involved in Resale Price Maintenance (RPM), a prohibited practice under Section 4 of the Competition Act, 2010. RPM occurs when manufacturers control the resale price of their products, limiting the ability of dealers and retailers to offer competitive discounts to consumers.
The investigation was initiated after the CCP reviewed documented evidence, including internal policy circulars issued by the companies. These circulars explicitly directed dealers not to sell products below certain price thresholds, effectively restricting price competition in the market.
Further scrutiny revealed that the companies enforced these policies through strict measures. Dealers were warned of serious consequences, including the potential termination of business agreements, if they failed to comply with the pricing directives.
Such actions not only distort market dynamics but also directly impact consumers by keeping prices artificially high. By restricting discounts and competitive pricing, these practices undermine the principles of a free and open market economy.
The CCP emphasized that enforcement against anti-competitive behavior remains a top priority. The regulator reiterated that businesses must operate within the legal framework and avoid practices that harm competition and consumer welfare.
This development serves as a strong signal to other companies that violations of competition laws will be met with firm penalties. It also reinforces the importance of transparency and fair play in Pakistan’s corporate sector.
As regulatory oversight tightens, businesses across industries are expected to review their pricing policies to ensure compliance and avoid similar repercussions.
