The Competition Commission of India (CCI) has imposed a total penalty of total Rs 14.28 crore on HP India and 16 of its resellers after finding them guilty of cartelisation in the sale and supply of print hardware consumables, including toner, cartridges and other products used with printing devices, a statement showed on Tuesday.
The regulator imposed a penalty of Rs 11.98 crore on HP India, while the 16 resellers were collectively fined around Rs 2.30 crore. The CCI also directed HP India and the resellers to cease and desist from engaging in anti-competitive conduct.
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The order followed proceedings initiated after HP India filed a lesser penalty application under Section 46 of the Act, alleging cartelisation among the company and its resellers.
The resellers found guilty include DD Enterprises, Ascent Information, Kaypee Enterprises, Britex Enterprises, Alankar Distributors, Vijay Stationery Mart, G R Enterprises, Perfect Innovative, Khandelwal Traders, A Square Technologies, Innovative Solutions, Pioneer Technologies, Delphi Infosolutions, Shakti Marketing, International Computer Resources and Arms Peripherals.
The competition watchdog also found HP India to have played a central role in the cartel arrangement among the resellers.
"The Commission also found the officials of HP India and its resellers liable under Section 48 of the Act and imposed monetary penalty upon them," CCI said in its order.
The case highlights the regulator's increasing focus on bidding practices and competition concerns in procurement markets, where coordinated bids or cover bids can restrict fair competition and impact market outcomes.
The CCI said HP India and the resellers must comply with the directions issued under the Competition Act and refrain from any future conduct that violates competition norms.
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Additionally, the CCI on Monday imposed a separate penalty of Rs 128.09 crore on HP India and five of its resellers for allegedly cartelising the sale and supply of personal system products through bids floated on the Government e-Marketplace (GeM). The regulator levied Rs 126.87 crore on HP India and a combined Rs 1.22 crore on the resellers.
The watchdog found that HP India dictated bid prices to its resellers and manipulated their participation in GeM tenders by withholding authorisations to benefit itself. It said the five resellers — Delphi Infosolutions, Digitech Computers, Orbit Techsol, Hind Technocare and Krishna Computers — colluded with the company, amounting to bid-rigging and cartelisation in violation of the Competition Act.
