Indian Govt Fines HP India 1.4 Billion Rupees for Cartel Practices
The Competition Commission of India (CCI) has penalized HP India and its partners with a total of 1.4 billion rupees (approximately $14.4 million) for engaging in cartel practices involving computers, ink cartridges, and toner.
Collaboration to Drive Up Costs for Government Contracts
The CCI investigation revealed that HP India colluded with certain channel partners to influence bidding processes for government contracts related to computers and printing supplies. This collusion aimed to drive up the cost of bids and gain an advantage over other Original Equipment Manufacturers (OEMs).
Manipulation of Reseller Activities
The CCI order states that HP India collaborated with five resellers to coordinate their bid prices for government contracts. This coordination involved limiting participation of certain resellers from specific territories, dividing accounts among themselves, and controlling the issuance of manufacturer’s authorization forms (MAFs). Additionally, HP India allegedly intervened in cases where other resellers offered lower prices than the government-approved platform rates.
Penalty for Counterfeit Products
HP India was also penalized 119.8 million rupees (approximately $1.2 million) for engaging in cartel practices related to the sale and supply of toner, cartridges, and other consumable items for printing hardware.
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