(CCP) has imposed penalties on Newage Cables (Pvt.) Ltd. and GM Cables & Pipes (Pvt.) Ltd., for violating Section 4 of the Competition Act, 2010.
The CCP conducted an inquiry after receiving information about policy circulars from both companies that restricted dealers from offering discounts beyond specified limits and prescribed punitive measures for non-compliance.
After its initial probe, the Commission authorized an enquiry under Section 37(1) of the Act. The enquiry concluded that the respondents had prima facie violated Section 4 by imposing minimum resale price restrictions on their dealers.
The CCP imposed a penalty of PKR 75 million on Newage Cables (Pvt.) Ltd., and a penalty of 5% of annual turnover for FY 2023–24, amounting to PKR 190.22 million, on GM Cables & Pipes (Pvt.) Ltd. The respondents have been directed to deposit the penalties within sixty days.
The Commission has also directed both companies to cease and desist from imposing minimum resale price restrictions, withdraw all such instructions issued to dealers, ensure that resale prices are independently determined, and submit a compliance report within prescribed timelines.