India fines HP and resellers for alleged bid rigging and fixed prices on printing supplies

HP Fined $14 Million For 'Cartelization' of Ink Cartridges, Toner, PCs

India's Competition Commission has fined HP India and its partners about 1.4 billion rupees ($14.4 million), alleging the company colluded with resellers to rig government PC bids and fix prices for ink cartridges, toner, and other printing supplies. "It said that HP was aiming to outcompete other OEMs and discourage resellers from selling 'counterfeit' ink and toner," adds Ars Technica. From the report: In an order, the CCI said that HP India worked with five resellers to coordinate their bid prices for government contracts to increase the chances of an HP partner winning the contracts. The company was fined 1.3 billion rupees (about $13.1 million). [...] HP was also fined 119.8 million rupees (about $1.2 million) for "indulging in cartelization in sale and supply of supplies products comprising of toner, cartridges, and other consumable used with print hardware products," CCI said in its announcement. The agency also fined 21 HP resellers 35.2 million rupees (about $365,335). In a separate order, the CCI said that WhatsApp records showed that HP and 16 of its Tier-2 reseller partners operated "in a collusive arrangement" and that the messages show the companies engaging in "bid rigging, including cover bidding, price fixation, and customer allocation during 2017-2020." HP India played a central role, the regulator said. Per the order, HP India said that high printing supply prices led some resellers to threaten to "shift to low-cost counterfeit products to compete on price." "HP India was commercially forced into a position where it had to support the collusive arrangement adopted by the Tier-2 resellers," the order reads. For its part, the order said that HP India "humbly objects to HP India's role being characterized as a 'kingpin' of the entire collusive arrangement." [...] The CCI also ordered HP India and its channel partners to "cease and desist from anti-competitive conduct" and to hold competition compliance training programs within 60 days. Read more of this story at Slashdot.

5 hours ago

HP fined 1.4 billion rupees for “cartelization” of ink cartridges, toner, PCs

Resellers threatened to ditch HP printing supplies for counterfeits.

6 hours ago