The Indian Competition Commission of India has imposed penalties totaling 1.4 billion rupees against HP India and affiliated reseller partners for engaging in what the regulator characterized as anticompetitive coordination practices.
According to CCI findings announced this week, HP India collaborated with channel partners to coordinate bid pricing on government contracts for computers and printing supplies, including ink cartridges, toner, and related consumables. The company received the largest penalty of 1.3 billion rupees, while 21 resellers collectively faced fines of 35.2 million rupees. The regulator determined that HP India participated in bid rigging activities, including the submission of cover bids, price coordination, and customer allocation arrangements spanning 2017 through 2020.
The CCI documented specific practices where resellers requested HP India’s assistance in dividing tender opportunities among themselves, restricting participation from competing resellers, limiting manufacturer authorization forms to designated partners, and addressing instances where other resellers offered below-standard pricing. WhatsApp communications between HP and 16 Tier-2 reseller partners provided evidence of the collusive arrangement, according to the order.
HP India argued that market conditions forced the arrangement, stating that excessively high printing supply costs prompted some resellers to threaten switching to counterfeit products. The company disputed characterizations of its role as orchestrating the collusion, instead attributing its participation to commercial necessity. The regulator separately fined HP India 119.8 million rupees specifically for cartelization in the sale of toner, cartridges, and other printing consumables.
The CCI mandated that HP India and its channel partners cease anticompetitive practices and complete competition compliance training within 60 days of the order. HP has not issued a public response regarding the penalties.
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