HP India Fined for Anti-Competitive Practices

HP India Fined for Anti-Competitive Practices

India’s antitrust regulator has fined HP India and 21 of its resellers a total of more than 1.42 billion rupees (about US$16.5 million) after finding they engaged in cartelisation and bid-rigging involving both personal computers and printer consumables sold through government procurement tenders.

In two orders issued on July 13, the Competition Commission of India (CCI) imposed cumulative penalties of 1.3885 billion rupees (about US$14.43 million) on HP India and around 35.2 million rupees (US$0.37 million) on the resellers. The regulator also ordered all parties to cease the anti-competitive practices, while requiring them to conduct competition compliance training within 60 days.

The cases relate to tenders conducted on the Government e-Marketplace (GeM) platform between 2017 and 2020 and cover both HP’s personal computer business and its printing supplies business.

In the personal computers case, the CCI fined HP India 1.2687 billion rupees (US$13.19 million) and five resellers a combined 12.2 million rupees (US$0.13 million). The regulator found that HP India dictated bid prices to resellers and selectively withheld authorization documents, allowing it to influence which partners could participate in government tenders and how they bid.

In a separate case involving printer consumables, including toner cartridges and other printing supplies, the CCI imposed an additional 119.8 million rupees (US$1.25 million) on HP India and about 23.0 million rupees (US$0.24 million) on 16 Tier-2 resellers. According to the regulator, the resellers coordinated by seeking and submitting support or cover bids, while HP India played a central role in facilitating the arrangement.

Both investigations were triggered after HP India filed lesser penalty applications under India’s Competition Act, disclosing the conduct to the CCI. The company received substantial reductions in its penalties in recognition of its cooperation and disclosures.

The CCI also imposed monetary penalties on several HP India officials and reseller executives under provisions that hold company officers personally liable when violations occur with their consent or connivance.

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