HP India fined over alleged bid rigging and printer supply cartel
India’s competition regulator penalized HP India and reseller partners over government computer bids and sales of toner, ink and other supplies.
By Maya Lindqvist · Senior Technology Correspondent
2 min read
India’s antitrust regulator has fined HP India and reseller partners about 1.4 billion rupees, or roughly $14.4 million, over alleged collusion in government computer contracts and printer supply sales. The Competition Commission of India said HP India worked with channel partners in conduct that distorted bids and restricted competition.
The CCI said this week that HP India coordinated with resellers on government tenders for computers and on the sale of toner, cartridges and other printer-related consumables. The regulator said the conduct was meant to improve the chances that HP-linked resellers would win contracts and to discourage some partners from selling “counterfeit” ink and toner.
In one order, the CCI said HP India worked with five resellers to align bid prices for government procurement. The agency imposed a 1.3 billion rupee penalty on HP India, equal to about $13.1 million.
According to the order, some resellers asked HP India to help limit competition among HP resellers. The requests included keeping resellers from other territories out of local tenders, dividing accounts or tenders, limiting manufacturer’s authorization forms for other resellers and arranging “cover” bids, the CCI said.
The regulator also fined HP India 119.8 million rupees, or about $1.2 million, in connection with what it called cartelization in toner, cartridges and other consumables used with printing hardware. The CCI said 21 HP resellers were separately fined 35.2 million rupees, or about $365,335.
A second CCI order focused on the printer supplies business. The regulator said WhatsApp records showed HP India and 16 Tier-2 reseller partners took part in a collusive arrangement between 2017 and 2020.
The CCI said those messages reflected bid rigging, cover bidding, price fixing and customer allocation. The regulator said HP India played a central role in the arrangement.
According to the CCI order, HP India said high prices for printing supplies had led some resellers to threaten to shift to lower-cost counterfeit products so they could compete on price. The order said HP India argued it was commercially pushed into supporting the arrangement adopted by Tier-2 resellers.
The order also said HP India objected to being described as the “kingpin” of the collusive arrangement. HP had not publicly commented on the penalties, according to Ars Technica.
The CCI ordered HP India and its channel partners to stop anti-competitive conduct. The regulator also directed them to hold competition compliance training programs within 60 days.
This story draws on original reporting from Ars Technica.