CCI Imposes ₹142 Crore Penalty On HP India Resellers For Cartelisation In Product Supplies

On Monday, 13 July, the Competition Commission of India (CCI) imposed penalties exceeding Rs. 142 crore on HP India and several of its resellers after finding them guilty of cartelisation in the sale and supply of personal system products and printing supplies.

In two separate orders passed under Section 27 of the Competition Act, 2002, the Commission imposed a penalty of Rs. 126.87 crore on HP India and approximately Rs. 1.22 crore on five resellers in connection with personal system products.

In a separate case concerning the supply of toner, cartridges and other printing consumables, the Commission imposed an additional penalty of Rs. 11.98 crore on HP India and around Rs. 2.30 crore on sixteen resellers. It also directed HP India and the concerned resellers to cease and desist from engaging in anti-competitive conduct.

The proceedings arose from lesser penalty applications filed by HP India, alleging cartelisation involving itself and its resellers.

In the first order concerning personal system products, the Commission found that HP India dictated bid prices to resellers and manipulated their participation in Government e-Marketplace (GeM) tenders by withholding authorisations to favour itself. It held that five resellers, Delphi Infosolutions, Digitech Computers, Orbit Techsol, Hind Technocare and Krishna Computers, colluded with HP India, resulting in cartelisation in violation of Sections 3(3)(d) read with Section 3(1) of the Competition Act.

In the second order concerning toner, cartridges and other consumables used with printing hardware products, the Commission found that sixteen Tier-2 resellers submitted support or cover bids. It held that HP India played a central role in facilitating the cartel arrangement among these resellers, violating Sections 3(3)(d) read with Section 3(1) of the Competition Act.

The Commission also held officials of HP India and the concerned resellers liable under Section 48 of the Competition Act and imposed monetary penalties on them.

Click here to read/ download the order with respect to personal system products

Click here to read/ download the order with respect to supplies products