The Competition Commission of India (CCI) has imposed a penalty of Rs 126.87 crore on HP India and a combined penalty of approximately Rs 1.22 crore on five of its resellers for indulging in anti-competitive practices in the sale and supply of personal system products.
The order, issued under Section 27 of the Competition Act, 2002, has also directed HP India and the five resellers to cease and desist from engaging in conduct found to be in violation of Sections 3(3)(d) read with Section 3(1) of the Act.
The proceedings have arisen from a lesser penalty application filed by HP India under Section 46 of the Competition Act, alleging cartelisation involving the company and its resellers. Based on the evidence on record, the CCI has found that HP India had dictated bid prices to resellers and manipulated their participation in Government e-Marketplace (GeM) tenders by withholding authorisations to benefit itself, thereby violating the provisions of the Competition Act.
The Commission has also found five resellers, Delphi Infosolutions, Digitech Computers, Orbit Techsol, Hind Technocare and Krishna Computers, to have acted in collusion with HP India in contravention of Sections 3(3)(d) read with Section 3(1) of the Act.
Additionally, the CCI has held officials of HP India and the five resellers liable under Section 48 of the Competition Act and has imposed monetary penalties on them.
The order has been passed in Suo Moto Case No. 07 of 2020 and has been made available on the Competition Commission of India’s website.
