CCI Fines HP India ₹11.98 Crore, 16 Resellers ₹2.30 Crore For 'Cartelisation'

The Competition Commission of India (CCI) has imposed a total penalty of ₹14.28 crore on HP India and 16 of its resellers after finding them guilty of cartelisation in the sale and supply of print hardware consumables, including toner, cartridges and other products used with printing devices.

According to the regulator’s order, HP India has been fined ₹11.98 crore, while the 16 resellers have collectively been penalised around ₹2.30 crore.

The CCI has also directed the company and the resellers to cease and desist from engaging in any anti-competitive conduct in the future.

The proceedings were initiated after HP India filed a lesser penalty application under Section 46 of the Competition Act, alleging cartelisation involving the company and its reseller network.

The application allowed the regulator to examine possible violations of competition rules related to coordinated market practices.

The resellers found guilty include 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 CCI found that HP India had played a central role in the cartel arrangement among the resellers. The regulator also held officials of HP India and the concerned resellers responsible under Section 48 of the Competition Act and imposed monetary penalties on them.

"The Commission also found the officials of HP India and its resellers liable under Section 48 of the Act and imposed monetary penalty upon them," the CCI said in its order.

The case highlights the regulator’s growing focus on anti-competitive practices in procurement and distribution markets, where coordinated pricing, bidding strategies or supply arrangements can restrict competition and affect market outcomes.

The CCI said companies involved in such practices must ensure compliance with competition laws and avoid any future conduct that could harm fair market competition.

The regulator’s action also reinforces its approach towards monitoring business relationships between manufacturers and distributors, especially in technology-related markets where organised supply chains and reseller networks play a significant role.

HP India and the resellers are required to follow the directions issued by the CCI under the Competition Act and ensure that their future commercial practices remain aligned with fair competition principles.