The Competition Commission of India (CCI) has imposed a fine of ₹35.2 million (approximately $365,335) on 21 HP resellers for anti-competitive practices.
In a detailed order, the CCI reported that WhatsApp records indicated HP, along with 16 Tier-2 reseller partners, was involved in “collusion,” engaging in practices such as “bidding rigging, price fixing, and customer quotas” from 2017 to 2020. The CCI highlighted that HP India was central to these activities.
The order further notes that HP India faced challenges as escalating prices for printing supplies led resellers to consider switching to lower-priced counterfeit products to remain competitive.
The CCI remarked, “HP India was commercially compelled to uphold collusive agreements set by Tier-2 resellers.” However, HP India has expressed its objection to being labeled as a “central player” in these collusive arrangements.
This situation underscores the ongoing struggles faced by HP resellers contending with high printer ink and toner prices. The issue is intensified by HP’s tendency to restrict the use of third-party inks through firmware updates in purchased printers. Concurrently, HP is pushing for increased usage of its own ink and toner products amid concerns from its partners regarding the high costs of ink supplies.
The CCI has mandated that HP India and its channel partners “cease anti-competitive conduct” and implement a competition compliance training program within 60 days.
As of yet, HP has not released any public statements regarding the imposed fine.
Source: arstechnica.com