HP India Fined INR1.38 Billion by CCI for Cartelisation
By Business Desk
The Competition Commission of India penalizes HP India INR1.38 billion for cartelisation and bid rigging in government tenders. Learn more about the investigation and its implications.
The Competition Commission of India (CCI) has imposed a substantial penalty of INR1.38 billion on HP India. This significant fine addresses the company’s involvement in cartelisation and bid rigging within the Indian market.
A collective fine of INR35 million was also levied against various resellers of HP’s technology products. This action follows an extensive investigation by the regulatory body.
Understanding the Violations
The CCI’s investigation, initiated through two suo motu cases, revealed that HP India actively manipulated bid prices. The company also controlled reseller participation in Government e-Marketplace (GeM) tenders by restricting necessary authorizations.
HP India specifically dictated the bid prices that its resellers could offer. This practice, coupled with the strategic withholding of authorization, ensured the company could control the bidding landscape for its technology products.
- HP India Penalty: INR1.38 billion (USD14.4 million)
- Resellers’ Collective Penalty: INR35 million
The penalties were divided across two distinct cases. The first case focused on cartelisation concerning personal system products, while the second addressed issues related to printers and their consumables.
- Case 1: HP India fined INR1.26 billion, with five resellers receiving a collective INR12.2 million. This related to cartelisation of personal system products, including laptops, desktops, monitors, and accessories.
- Case 2: HP India received an INR119.8 million penalty, alongside 16 resellers collectively fined INR23 million. This second case concerned issues with printers, toners, and cartridges.
A former HP India employee, Manoj Grover, played a role in the proceedings. He filed an application for penalty reduction and reported the company to the regulatory authority during the investigation.
While specific details regarding penalties on individual HP India officials and other resellers remain redacted from public orders, the CCI’s action underscores its firm stance against anti-competitive practices. This ruling highlights the regulatory body’s commitment to fair competition in public procurement.