HP India, its resellers fined ₹143 crore by CCI over cartelisation in GeM tenders, supplies business

The Competition Commission of India (CCI) has imposed penalties totalling about ₹143.4 crore on HP India and 21 of its resellers for indulging in cartelisation in the sale and supply of personal systems and printer consumables, the fair trade regulator said on Monday.

In two separate orders, the watchdog imposed a penalty of ₹126.87 crore on HP India and around ₹1.22 crore collectively on five resellers in a case relating to personal system products.

In a separate matter involving printer supplies such as toner, cartridges and other consumables, the regulator levied a penalty of ₹11.98 crore on HP India and about ₹2.30 crore collectively on 16 resellers.

The Commission also directed HP India and the resellers to cease and desist from anti-competitive conduct that was found to be in violation of the Competition Act.

According to the CCI, both proceedings arose from lesser penalty applications filed by HP India under Section 46 of the Act, in which the company disclosed cartelisation involving itself and its resellers.

In the personal systems case, the regulator found that HP India "was engaged in dictating bid prices to resellers and manipulated participation of resellers in the GeM tenders by withholding authorisation, in order to benefit itself".

The Commission held that five resellers -- Delphi Infosolutions, Digitech Computers, Orbit Techsol, Hind Technocare and Krishna Computers -- acted in collusion with HP India in the anti-competitive arrangement.

In the second case concerning supplies products, the CCI found that 16 Tier-2 resellers had indulged in seeking and submitting "support/cover bids" in tenders.

The regulator said HP India played a "central role in the cartel arrangement" among these resellers.

The 16 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 Commission also held officials of HP India and the concerned resellers liable under Section 48 of the Competition Act and imposed monetary penalties on them.