HP hit with 1.4 billion rupee cartel fine in India

HP India has been fined 1.4 billion rupees by India’s competition regulator over what the agency described as the “cartelization” of ink cartridges, toner, and PCs. The Competition Commission of India (CCI) also fined 21 HP resellers 35.2 million rupees in total, or about $365,335.

In a separate order, the CCI said WhatsApp records showed that HP and 16 of its Tier-2 reseller partners were involved in “a collusive arrangement.” According to the regulator, the messages documented bid rigging, including cover bidding, price fixation, and customer allocation during 2017–2020. The CCI said HP India played a central role.

The order says HP India argued that the high price of printing supplies had pushed some resellers to threaten to “shift to low-cost counterfeit products to compete on price.” As summarized in the order, “HP India was commercially forced into a position where it had to support the collusive arrangement adopted by the Tier-2 resellers.” HP India also disputed the regulator’s characterization, with the order stating that the company “humbly objects to HP India’s role being characterized as a 'kingpin' of the entire collusive arrangement.”

The case puts fresh attention on the long-running economics of the printer business. Even some of HP’s own resellers, according to the order, were struggling with the high cost of official ink and toner. That pressure has been compounded by HP’s use of firmware updates to block third-party ink in printers customers already own, a practice that has drawn repeated criticism.

The CCI ordered HP India and its channel partners to cease and desist from anti-competitive conduct and to conduct competition compliance training programs within 60 days. HP has not publicly commented on the fines.

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