CCI Fines HP India $16.7 Million for Rigging Government Tenders

The Competition Commission of India (CCI) has imposed a cumulative penalty of INR 138.9 crore (approximately $16.7 million USD) on HP India and five of its resellers for engaging in anti-competitive practices and cartelization on the Government e-Marketplace (GeM) platform.

The CCI's investigation found that HP India dictated bid prices to its resellers and manipulated their participation in tenders by withholding necessary authorisations. In a separate case concerning printing supplies, such as toners and cartridges, the regulator determined that HP coordinated "cover bids" among its resellers. This practice allowed certain bidders to submit artificially inflated prices, ensuring a pre-selected firm won the tender.

HP India was fined INR 126.9 crore ($15.2 million USD) in the first case, while the five resellers – Delphi Infosolutions, Digitech Computers, Orbit Techsol, Hind Technocare, and Krishna Computers – received combined penalties of INR 1.2 crore ($144,000 USD) for their involvement in rigging bids for personal computer systems. An additional INR 11.98 crore ($1.4 million USD) fine was levied on HP and its tier-II resellers for manipulating bids related to printing supplies.

HP India voluntarily self-reported its illegal activities, leading the CCI to grant leniency and impose a reduced penalty under Section 46 of the Competition Act. The CCI has ordered all parties to cease such practices immediately and to conduct compliance training within 60 days. Individual officials from both HP India and the reseller firms have also been held personally liable.