The Competition Commission of India (CCI) has fined HP India and 16 resellers a total of over Rs 14 crore for engaging in anti-competitive practices related to printer consumables. HP India faces a penalty of Rs 11.98 crore, while the resellers collectively have to pay around Rs 2.30 crore for cartelization in the sale and supply of printer supplies.
Under Section 27 of the Competition Act, the CCI has directed HP India and the resellers to stop anti-competitive behavior. The penalties were imposed after HP India disclosed cartelization involving itself and certain resellers. The investigation revealed that 16 Tier-2 resellers distorted the competitive bidding process by seeking and submitting support or cover bids.
The Commission found that HP India played a significant role in facilitating the cartel arrangement among the resellers. Officials of HP India and the implicated resellers have also been held liable under Section 48 of the Competition Act and have been fined. The resellers named in the order include DD Enterprises, Ascent Information, Kaypee Enterprises, and others.
