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HP Fined 1.4B Rupees for Ink Cartridge Cartelization

Ars Technica •
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The Competition Commission of India (CCI) fined HP 1.4 billion rupees for "cartelization" of ink cartridges, toner, and PCs. The agency also fined 21 HP resellers 35.2 million rupees (about $365,335). In a separate order, the CCI said WhatsApp records showed that HP and 16 of its Tier-2 reseller partners operated "in a collusive arrangement" engaging in "bid rigging, including cover bidding, price fixation, and customer allocation during 2017–2020." HP India played a central role, the regulator said.

Per the order, HP India said high printing supply prices led some resellers to threaten to "shift to low-cost counterfeit products to compete on price." "HP India was commercially forced into a position where it had to support the collusive arrangement adopted by the Tier-2 resellers," the order reads. HP India "humbly objects to HP India's role being characterized as a 'kingpin' of the entire collusive arrangement."

The revelation underscores a problem many printer users face, exacerbated by HP's tendency to block third-party ink through firmware updates. The CCI also ordered HP India and its channel partners to "cease and desist from anti-competitive conduct" and hold competition compliance training programs within 60 days. HP hasn't publicly commented on the fines.