New Delhi, July 13 (IANS) The Competition Commission of India (CCI) on Monday imposed penalties totalling more than Rs 14 crore on HP India and 16 of its resellers for engaging in anti-competitive practices related to the sale and supply of printer consumables, including toner cartridges and other supplies used with printing hardware.

In an order issued under Section 27 of the Competition Act, 2002, the competition watchdog imposed a penalty of Rs 11.98 crore on HP India and a combined penalty of around Rs 2.30 crore on the 16 resellers for cartelisation in the sale and supply of supplies products.

The Commission also directed HP India and the resellers to cease and desist from anti-competitive conduct after finding them in violation of Sections 3(3)(d) read with Section 3(1) of the Competition Act.

According to the CCI, the proceedings originated from a lesser penalty application filed by HP India under Section 46 of the Act, in which the company disclosed the existence of cartelisation involving itself and certain resellers.

Based on the evidence examined during the investigation, the Commission found that 16 Tier-2 resellers of HP India had engaged in the practice of seeking and submitting support or cover bids, thereby distorting the competitive bidding process. The resellers named in the order are DD Enterprises, Ascent Information, Kaypee Enterprises, Britex Enterprises, Alankar Distributors, Vijay Stationery Mart, G R Enterprises, Perfect Innovative, Khandelwal Traders, A Square Technologies, Innovative Solutions, Pioneer Technologies, Delphi Infosolutions, Shakti Marketing, International Computer Resources and Arms Peripherals.

The CCI further held that HP India played a central role in facilitating the cartel arrangement among the resellers, making it liable for contravention of Section 3(3)(d) read with Section 3(1) of the Act.

Apart from penalising the company and its resellers, the Commission also held officials of HP India and the implicated resellers liable under Section 48 of the Competition Act and imposed monetary penalties on them.

–IANS

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