HP India hit with Rs 142 crore CCI fine for anti-competitive practices

The Competition Commission of India (CCI) has fined HP India and its resellers a total of Rs 142.37 crore over allegations of anti-competitive practices. The fine includes two separate cases, which involve the cartelisation of the sale and supply of personal system products, such as PCs, laptops and related hardware.

These practices can involve fixing prices, coordinating bids or manipulating the market, which is illegal under India's competition law. According to a PTI report, CCI has ordered HP India and its resellers to immediately stop the anti-competitive practices under Section 3 of the Competition Act, 2002. Under the allegation, HP India needs to pay a penalty of Rs 126.87 crore, and its five resellers need to pay approximately Rs  1.22 crore.

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The government body has also issued a second order in which HP India was fined Rs 11.98 crore and its sixteen resellers were fined a combined Rs 2.30 crore. The order says that the company was involved in the sale and supply of printer consumables, such as toner cartridges
ink cartridges, and other consumables used with HP printers.

The official statement said, “Based on the evidence on record, the Commission found 16 tier-2 resellers of HP India to have indulged in seeking and submitting support/cover bids in contravention of Section 3(3)(d) read with Section 3(1) of the Act. The Commission also found HP India to have played a central role in the cartel arrangement among these resellers.”

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Reports suggest that CCI has identified 16 HP resellers alleged to have engaged in anti-competitive practices. These companies 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 proceedings arose from the lesser penalty application filed by HP India under Section 46 of the Act 19(1)(a) of the Act, alleging cartelisation among HP India and its resellers,” the Commission said.