HP penalized with millions in fines for behaving like a cartel concerning ink and PCs.

      HP has been implicated in manipulating bids for ink and computers, leading to a fine of nearly $15 million.

      If you've bought printer ink, you know how frustratingly high its price can be for something so basic. However, HP's recent issue extends much deeper. The Competition Commission of India has imposed a fine of 1.42 billion rupees, approximately $15 million, on HP India and 21 of its resellers after determined that they colluded to rig bids for government contracts related to personal computers, toner, cartridges, and other printer supplies. These orders pertain to tenders made through the Government e-Marketplace between 2017 and 2020.

      HP allegedly controlled the competitive landscape

      The regulator found that HP influenced pricing for resellers and selectively withheld authorization documents, enabling the company to determine which partners could bid on certain contracts. WhatsApp messages reportedly revealed resellers coordinating price fixing, customer distribution, and cover bidding—submitting intentionally non-competitive bids to favor a preferred bidder. In some instances, HP is said to have predetermined which reseller would cater to a specific client.

      This arrangement supposedly guaranteed that at least one HP reseller made it to the final phase of reverse auctions, where prices reduce as suppliers vie against one another. In the case concerning computers, five resellers were held accountable, while 16 others were implicated in the printer supplies investigation.

      According to the regulator, pressure on pricing led some lower-tier resellers to threaten to switch to cheaper counterfeit toner and cartridges. Subsequently, HP facilitated an agreement to prevent these sellers from undercutting each other, as stated in the order.

      HP inadvertently revealed its own misconduct

      An individual pictured using an HP Envy 6020e printer, with the Instant Ink box visible.

      HP itself filed applications under a program offering leniency in penalties for disclosing anti-competitive conduct and collaborating with investigators. These applications initiated the investigations and allowed for significant reductions in the company's fine.

      Several employees of HP and reseller executives were also held personally accountable. The companies are required to cease these prohibited practices and undergo competition-compliance training within 60 days. Unfortunately, HP has not commented on the situation. As this case involves government procurement, ordinary consumers shouldn't expect refunds or immediate changes in retail ink prices. The company's ongoing controversies regarding the blocking of certain third-party cartridges and its subscription-based printing model are separate issues.