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HP hit with 1.4 billion rupee cartel fine in India
India’s competition regulator fined HP India 1.4 billion rupees over alleged collusion in printer supplies and PC bids from 2017 to 2020.
Image: Ars Technica
HP India has been fined 1.4 billion rupees by India’s Competition Commission of India (CCI) over what the regulator described as the “cartelization” of ink cartridges, toner, and PCs. The agency also fined 21 HP resellers 35.2 million rupees in total, or about $365,335.
In a separate order, the CCI said WhatsApp records showed that HP and 16 of its Tier-2 reseller partners operated “in a collusive arrangement.” According to the regulator, the messages showed the companies engaging in “bid rigging, including cover bidding, price fixation, and customer allocation during 2017–2020.” The agency said HP India played a central role.
The order says HP India argued that high prices for printing supplies had pushed some resellers to threaten to “shift to low-cost counterfeit products to compete on price.” As quoted in the order, “HP India was commercially forced into a position where it had to support the collusive arrangement adopted by the Tier-2 resellers.”
The same order adds that HP India “humbly objects to HP India’s role being characterized as a 'kingpin' of the entire collusive arrangement.”
The case also throws a spotlight on the broader economics of printer supplies. Even some of HP’s own partners were described as struggling with the cost of ink and toner, a long-running complaint among printer buyers. That pressure has been compounded by HP’s practice of blocking some third-party ink in already-purchased printers through firmware updates, while also trying to keep users locked into HP-branded consumables.
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The CCI 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. HP has not publicly commented on the fines.
Enterprise Editor
Marcus follows the money. He covers enterprise software, cloud architecture, and the tectonic shifts in Big Tech strategy. He translates dense earnings calls and complex M&A activity into actionable insights about where the industry is actually heading. If a tech giant makes a silent pivot, Marcus is usually the first to notice.
via Ars Technica
