CCP Imposes PKR 265 Million Penalty on Cable Firms for RPM Violations

(CCP) has penalized Newage Cables (Pvt.) Ltd. and GM Cables & Pipes (Pvt.) Ltd. for violating Section 4 of the Competition Act, 2010, by engaging in Resale Price Maintenance (RPM). The CCP imposed penalties of PKR 75 million on Newage Cables and PKR 190.22 million on GM Cables.

The Commission’s inquiry was based on documentary evidence, including policy circulars from both companies that restricted dealers from offering discounts beyond certain limits and prescribed punitive measures for non-compliance. After its initial probe, the CCP authorized an enquiry under Section 37(1) of the Act.

The enquiry concluded that both respondents had prima facie violated Section 4 by imposing minimum resale price restrictions on their dealers. The Commission observed that these practices eliminated intra-brand competition and adversely affected consumer choice. Both undertakings were found to have engaged in RPM, a restriction “by object” under the Act.

Newage Cables demonstrated cooperation during proceedings, while GM Cables continued its infringing conduct despite initiation of the enquiry. Accordingly, penalties were imposed: PKR 75 million on Newage and PKR 190.22 million on GM Cables. The respondents have been directed to deposit penalties within sixty days; otherwise, an additional penalty of PKR 500,000 per day will accrue.

The CCP has further ordered both companies to cease imposing minimum resale price restrictions, withdraw related instructions from dealers, ensure independent determination of resale prices, and submit compliance reports. Newage Cables was also directed to remove discount cap provisions from its dealership agreements. The order underscores the Commission’s commitment to fair competition and consumer protection.