HP India fined 1.4 billion rupees for ink and PC cartelisation

The Competition Commission of India (CCI) has imposed a total fine of 1.4 billion rupees (approximately $14.4 million) on HP India for engaging in anti-competitive practices involving the cartelisation of ink cartridges, toner, and personal computers. The regulator determined that HP India colluded with reseller partners to rig bids for government contracts and fix prices for printing supplies between 2017 and 2020.

The CCI found that HP India coordinated with five resellers to manipulate tender outcomes, restricting competition by limiting participation from other territories and dividing accounts. The commission cited WhatsApp records demonstrating bid-rigging, cover bidding, price fixation, and customer allocation involving HP and 16 Tier-2 reseller partners. HP India was fined 1.3 billion rupees for its role in these government contract manipulations.

An additional 119.8 million rupees was imposed for cartelisation in the sale of printing supplies, including toner and cartridges. The CCI also fined 21 HP resellers a combined 35.2 million rupees for their involvement in the collusive arrangements. The regulator characterised HP India’s role as central to the scheme, despite the company’s objection to being labelled the "kingpin" of the arrangement.

HP India argued it was "commercially forced" into the arrangement because resellers threatened to switch to low-cost counterfeit products to compete on price. The company stated it had to support the collusive practices adopted by Tier-2 resellers to prevent them from shifting their business to counterfeit alternatives. HP has not publicly commented on the fines.

The CCI has ordered HP India and its channel partners to cease anti-competitive conduct and complete competition compliance training within 60 days. The order highlights the economic pressures within the printer supply chain, where high prices for genuine supplies have led to threats of counterfeit adoption.