HP fined millions of dollars for acting like a cartel over ink and PCs

If you’ve ever purchased printer ink, you’re aware of the annoyingly expensive cost behind something that seems so basic. But HP’s latest problem goes considerably further. India’s Competition Commission has fined HP India and 21 of its resellers a combined 1.42 billion rupees, or roughly $15 million, after finding that they rigged bids for government contracts involving personal computers, toner, cartridges, and other printer supplies. The orders cover tenders placed through the Government e-Marketplace between 2017 and 2020.

HP allegedly decided who got to compete

The regulator found that HP dictated prices to resellers and selectively withheld authorization documents, giving the company control over which partners could participate in certain tenders. WhatsApp records reportedly showed resellers engaging in price fixing, customer allocation, and cover bidding. Meaning, it was apparently involved in submitting deliberately uncompetitive offers so that a preferred bidder has a clearer path to winning the contract. In some cases, HP allegedly decided in advance which reseller would serve a particular customer.

The PC arrangement reportedly helped ensure that at least one HP reseller remained in the final stage of reverse auctions, where prices drop as suppliers compete. Five resellers were found liable in the computer case, while 16 were implicated in the printer-supplies investigation.

The regulator said pricing pressure led some lower-tier resellers to threaten a shift toward cheaper counterfeit toner and cartridges. HP then facilitated an agreement designed to prevent participating sellers from undercutting one another, according to the order.

HP helped expose its own behavior

HP itself submitted applications under a program that offers reduced penalties in exchange for disclosing anti-competitive behavior and cooperating with investigators. Those applications triggered both investigations and earned the company significant reductions to its eventual fine.

Several HP employees and reseller executives were also held personally liable. The companies must stop the prohibited practices and complete competition-compliance training within 60 days. Unfortunately, HP has yet to comment on this matter. The case concerns government procurement, so ordinary printer owners should not expect refunds or immediate changes to retail ink prices. HP’s consumer controversies over blocking some third-party cartridges and pursuing subscription-based printing are separate.