The Competition Commission of India (CCI) has imposed penalties on HP India and 21 of its authorised resellers for engaging in bid rigging in Government e-Marketplace (GeM) tenders. The regulator found that the companies were involved in anti-competitive practices related to the sale of personal computer products and printer consumables.
The Competition Commission of India (CCI) has fined HP India ₹138.85 crore and 21 authorised resellers a total of ₹3.52 crore after finding that they colluded in Government e-Marketplace (GeM) tenders. The penalties were issued through two separate orders on July 13.
One order dealt with the distribution and sale of personal system products, while the other focused on printer consumables, including toner cartridges.
In the personal systems case, the CCI imposed a penalty of ₹126.87 crore on HP India. The regulator also fined five resellers a combined ₹1.22 crore. In the second case, involving printer consumables, HP India was fined ₹11.98 crore, while 16 resellers were collectively penalised nearly ₹2.30 crore.
The CCI said its investigation found that HP India influenced the GeM bidding process by directing the bid prices submitted by its authorised resellers. The company also controlled participation in the tenders by selectively issuing authorisation approvals, allowing it to influence the outcome of the bidding process.
The regulator further found that HP India had coordinated with Delphi Infosolutions, Digitech Computers, Orbit Techsol, Hind Technocare, and Krishna Computers in the personal systems case.
In a separate order, the Commission found that HP India was also part of a cartel involving 16 Tier-2 resellers in the printer consumables business. According to the CCI, these resellers submitted “cover bids”, which created the appearance of competition while ensuring that a predetermined bidder secured the contract.
The CCI held that the conduct violated Section 3(3)(d), read with Section 3(1), of the Competition Act, 2002, which prohibits bid rigging and collusive bidding.
Both investigations began after HP India submitted leniency applications under Section 46 of the Competition Act. Under the law, companies involved in cartel activities can receive reduced penalties if they voluntarily disclose information and cooperate with the investigation. Based on HP India’s cooperation, the company received a reduction in its penalties.
Apart from imposing financial penalties, the Commission directed HP India and the resellers to immediately stop these anti-competitive practices. It also held several HP India officials and reseller executives liable under Section 48 of the Competition Act and instructed them to complete competition compliance training programmes within 60 days.
The cases relate to Government e-Marketplace tenders for personal computer products and printer consumables between 2017 and 2020. The latest action is part of the CCI’s ongoing efforts to address cartelisation and ensure fair competition in government procurement.
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