HP fined RM59 million for rigging government PC and printer supply bids
India has hit HP with a 1.39 billion rupee (~RM58.9 million) fine after India’s competition watchdog found that the company worked with reseller partners to rig bids for government contracts involving PCs and printer supplies.
The Competition Commission of India (CCI) has stated that HP India colluded with 21 reseller partners between 2017 and 2020 to manipulate tenders on the government’s electronic procurement platform. According to the regulator, HP coordinated bid prices, limited which resellers could participate in certain tenders by controlling Manufacturer’s Authorisation Forms (MAFs), and even arranged ‘cover bids’ to improve the chances of a HP partner securing the contract.
According to the CCI, WhatsApp conversations obtained during the investigation showed HP India and several reseller partners discussing bid prices, allocating customers and coordinating bids. The regulator concluded that HP played a central role in the arrangement, although the company denies being the ‘kingpin’ of the cartel.
In fact, it seems that one reason why HP India even decided to go this route was that, according to the CCI, some reseller partners had threatened to switch to selling cheaper counterfeit ink and toner because genuine HP consumables had become too expensive to compete on price. The company then argued that it was ‘commercially forced’ to support the collusive arrangement to protect its printer supplies business.
That’s not too surprising to hear of course, considering that they’ve long been criticised for the high cost of its genuine ink and toner, while also drawing backlash for firmware updates that block the use of some third-party cartridges in its printers. The CCI’s findings suggest that even some of HP’s own reseller partners were struggling to stay competitive while selling genuine HP consumables.
The investigation itself only happened because HP India applied for leniency under India’s Competition Act and cooperated with the CCI’s investigation. That cooperation resulted in a reduced penalty for the company. HP India and its reseller partners also have to immediately cease anti-competitive practices and conduct competition law compliance training within 60 days.
Read more of our articles below!
