CCI Slaps ₹14.28 Crore Fine on HP India, 16 Resellers for Cartelisation

The Competition Commission of India (CCI) has imposed penalties totalling ₹14.28 crore on HP India and 16 of its Tier-2 resellers for engaging in anti-competitive practices involving the sale and supply of printer consumables, including toner, cartridges and other print hardware products .

According to the CCI's order, HP India has been fined ₹11.98 crore , while the 16 resellers have been collectively penalised around ₹2.30 crore . The competition watchdog has also imposed penalties on certain officials of HP India and the reseller firms. In addition to the monetary penalties, all parties have been directed to cease and desist from indulging in anti-competitive conduct.

The case stems from a suo motu investigation initiated by the CCI in 2020 into suspected cartelisation in the printer consumables market. The regulator found that HP India played a central role in coordinating a cartel arrangement among its authorised Tier-2 resellers, resulting in unfair business practices that distorted competition.

The CCI said the companies were found guilty of cartelisation in the sale and supply of toner cartridges, printer cartridges and other consumables used with HP print hardware products. Such practices are prohibited under the Competition Act as they restrict fair competition and adversely affect consumers and the market.

The proceedings arose from a lesser penalty application filed by HP India under Section 46 of the Competition Act , in which the company disclosed the alleged cartel arrangement. Based on the evidence gathered during the investigation, the CCI concluded that 16 Tier-2 resellers had participated in the anti-competitive conduct .

The reseller firms named in the order 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 ruling reinforces the CCI's continued crackdown on cartelisation and anti-competitive agreements , signalling that companies and their distribution networks will face stringent action for practices that undermine fair competition in the Indian market.