CCP Penalties Newage and GM Cables PKR 265 Million for Price Fixation.

The Competition Commission of Pakistan (CCP) has imposed a combined penalty of PKR 265.22 million on two of the country’s leading cable manufacturers, Newage Cables and GM Cables & Pipes. This enforcement action follows an investigation into Resale Price Maintenance (RPM), a prohibited practice where manufacturers dictate the minimum prices at which dealers can sell products to consumers.

Protecting Consumer Rights and Market Competition

The CCP’s ruling aims to restore fair pricing and competitive practices within the national cable industry:

• Elimination of Discounts: By enforcing fixed rates, these firms effectively eliminated internal price competition, preventing dealers from offering discounts to their customers.
• Consumer Impact: The lack of competition forced consumers to pay higher, non-negotiable prices across the entire dealer networks of both companies.
• Broader Regulatory Vigilance: This penalty is part of a wider crackdown by the CCP on anti-competitive behavior, which recently included a PKR 35 million fine on Unilever and FrieslandCampina Engro for misleadingly marketing “frozen desserts” as “ice cream”.

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Muneeba

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