CCI imposes penalty on HP India and its certain resellers for indulging in anti-competitive practices in supply of Supplies products

Prelims-testable facts

• 01The Competition Commission of India (CCI) imposed a penalty of INR 11.98 crores on HP India.
• 02A combined penalty of approximately INR 2.30 crores was imposed on sixteen resellers of HP India for cartelisation in the sale and supply of supplies products.
• 03HP India and its resellers were found to have indulged in seeking and submitting support/cover bids in contravention of Section 3(3)(d) read with Section 3(1) of the Competition Act, 2002.
• 04The CCI also found HP India to have played a central role in the cartel arrangement among these resellers.
• 05Monetary penalty was imposed on officials of HP India and its resellers under Section 48 of the Competition Act, 2002.
• 06The penalty proceedings arose from a lesser penalty application filed by HP India under Section 46 of the Competition Act, 2002.
• 07HP India's sixteen Tier-2 resellers were found to have engaged in anti-competitive practices in the supply of supplies products.

Trap alerts

• Most people think that cartelisation is only about price-fixing, but actually it can also involve bid-rigging and other forms of collusive behavior.
• Most people think that HP India was just a passive player in the cartel arrangement, but actually it played a central role according to the CCI's findings.
• Most people think that the penalty imposed on HP India and its resellers is the first instance of such action by the CCI, but actually there may be previous instances not mentioned in this article.