The Competition Commission of India (CCI) has ordered HP India and several of its resellers to pay a total of ₹142.37 crore for anti-competitive practices in the computer and printer industries. The company and dealer network were found to have taken advantage of fair competition as per the Competition Act, 2002.
According to the CCI, HP India and the concerned resellers have been directed to stop such practices immediately. Under Section 3 of the Competition Act, agreements that have an adverse effect on competition in the market are prohibited.
A major penalty on HP India
In its first order, CCI imposed a ₹126.87 crore penalty on HP India. Five of its resellers were also fined a combined ₹1.22 crore for allegedly coordinating business practices related to the sale of personal computing products.
The regulator said the parties engaged in activities that could affect pricing, bidding processes and sales strategies and thus decrease fair competition in the marketplace. If proven to be so, consumer choice would be diminished and the market would be competitive for other businesses.
Second Order with Printer Consumables
In a separate order, the competition watchdog has also imposed a further ₹11.98 crore penalty on HP India for sale and supply of printer consumables, including toner cartridges, ink cartridges, and related accessories.
The CCI also imposed a combined penalty of ₹2.30 crore on 16 HP resellers alleged to have engaged in anti-competitive practices related to these products.
According to the Commission, the evidence also indicated that several tier-2 resellers were involved in cover bidding and sought bid support from one another in procurement processes, a practice that may undermine genuine competition.
Alleged Cartel Arrangement
The CCI found that the alleged conduct contravened Section 3(3)(d) and Section 3(1) of the Competition Act. HP India was also said to have played a key role in facilitating the arrangement among its reseller network.
The resellers named in the proceedings are 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.
Investigation Started With Leniency Application
Interestingly, the proceedings arose from a lesser penalty (leniency) application filed by HP India under Section 46 of the Competition Act. Through this application, the company had shared information regarding the alleged cartelisation of itself and its reseller network.
The CCI stressed that fair competition is essential for consumers and transparency in the marketplace. The regulator also stressed that businesses should avoid manipulations of prices, restrict competition, or influence bidding processes.
No Official Response Yet
As far as we know, HP India has not provided any public statement about the CCI’s penalty order.
The move comes at a time of rapid growth and competition among domestic and foreign brands in India's technology hardware industry. The regulator’s action has the effect of sending a strong message: anti-competitive conduct will be dealt with harshly; fair business practices should be the order of the day.
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