CCI fines HP India, 16 resellers over Rs 14 crore for cartelisation in printer consumables
New Delhi, July 13
The Competition Commission of India on Monday imposed penalties totalling more than Rs 14 crore on HP India and 16 of its resellers for engaging in anti-competitive practices related to the sale and supply of printer consumables, including toner cartridges and other supplies used with printing hardware.
In an order issued under Section 27 of the Competition Act, 2002, the competition watchdog imposed a penalty of Rs 11.98 crore on HP India and a combined penalty of around Rs 2.30 crore on the 16 resellers for cartelisation in the sale and supply of supplies products.
The Commission also directed HP India and the resellers to cease and desist from anti-competitive conduct after finding them in violation of Sections 3(3)(d) read with Section 3(1) of the Competition Act.
According to the CCI, the proceedings originated from a lesser penalty application filed by HP India under Section 46 of the Act, in which the company disclosed the existence of cartelisation involving itself and certain resellers.
Based on the evidence examined during the investigation, the Commission found that 16 Tier-2 resellers of HP India had engaged in the practice of seeking and submitting support or cover bids, thereby distorting the competitive bidding process. The resellers named in the order 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.
The CCI further held that HP India played a central role in facilitating the cartel arrangement among the resellers, making it liable for contravention of Section 3(3)(d) read with Section 3(1) of the Act.
Apart from penalising the company and its resellers, the Commission also held officials of HP India and the implicated resellers liable under Section 48 of the Competition Act and imposed monetary penalties on them.
— IANS
Reader Comments
Rs 14 crore fine seems too low for a company like HP which makes billions globally. But the bigger issue is that these cartels hurt small businesses who rely on printers for their daily work. Hope this serves as a deterrent for others in the industry.
Yaar, this happens everywhere in India. The resellers are small players but HP is the big fish. They probably forced these resellers into the cartel. Only in India does a company get penalised for doing what multinationals tell them to do. Very unfair.
As someone who works in procurement, I've seen this kind of bid-rigging firsthand. It's good that CCI is cracking down, but the real problem is that these practices are so deeply embedded in our business culture. We need stricter enforcement and more awareness among resellers about competition law.
Printers ki toh baat hi mat karo! Original cartridges cost almost as much as the printer itself. And third-party ones ruin your printer. This cartelisation just adds to the misery of Indian consumers. CCI should also look at the pricing of spare parts for other electronics.
Honestly, who is surprised? Big companies always find ways to exploit the system. But I'm glad CCI took action. The Rs 14 crore fine might be small for HP, but for those 16 small resellers named in the order, this could be devastating. Hope the penalties are proportional to their size.
J We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.