Key facts
- HP India and its partners were fined a total of 1.4 billion rupees ($14.4 million) by India's Competition Commission.
- The fine was for engaging in cartelization related to computers, ink cartridges, and toner.
- HP India colluded with resellers to manipulate bids for government contracts.
- The company also engaged in cartelization for the sale and supply of toner and cartridges.
- WhatsApp messages revealed bid rigging, price fixation, and customer allocation among HP and its resellers.
The Competition Commission of India (CCI) has levied a total fine of 1.4 billion rupees (approximately $14.4 million) against HP India and its channel partners for engaging in anti-competitive practices. The regulator found that HP India colluded with some resellers to manipulate bid prices for government contracts related to computers, ink cartridges, and toner.
The CCI's order detailed how HP India worked with five resellers to coordinate their bids, restrict participation from other territories, divide accounts, and facilitate "cover" bids to ensure HP partners won contracts. HP India itself was fined 1.3 billion rupees for this aspect of the cartelization.
In a separate finding, HP India was fined an additional 119.8 million rupees for cartelization in the sale and supply of toner, cartridges, and other print hardware consumables. Furthermore, 21 HP resellers collectively received fines totaling 35.2 million rupees.
Evidence, including WhatsApp records, indicated that HP and 16 of its Tier-2 reseller partners operated in a collusive arrangement involving bid rigging, price fixation, and customer allocation between 2017 and 2020. The CCI noted that HP India played a central role, though the company reportedly objected to being characterized as the "kingpin."
HP India stated that high printing supply prices had pushed some resellers to threaten shifting to counterfeit products to remain competitive. The CCI has ordered HP India and its channel partners to cease their anti-competitive conduct and implement competition compliance training within 60 days. HP has not yet publicly commented on the fines.