Competition Commission of India Slaps ₹142 Crore Penalty on HP India and Resellers for Cartelisation and Bid Rigging

On 13 July 2026, the Competition Commission of India (CCI) imposed penalties exceeding ₹142 crore on HP India and several resellers under Section 27 of the Competition Act, 2002 (Competition Act) for cartelisation and bid rigging in the sale and supply of HP personal system products, including laptops, desktops, workstations and accessories (Computers Case), and ink and toner cartridges (Cartridges Case). The orders arose from lesser penalty applications filed by HP India under Section 46 of the Competition Act read with the CCI (Lesser Penalty) Regulations, 2009.

Upon forming a prima facie opinion of contravention of Section 3, the CCI directed the Director General (DG) to investigate Delhi procurers’ Government e-Marketplace (GeM) tenders valued at over ₹1 crore in the Computers Case and ₹20 lakh in the Cartridges Case.

In the Computers Case[1], the CCI imposed ₹126.87 crore on HP India and approximately ₹1.22 crore on five resellers. Relying on documentary and communication evidence, including emails and reseller submissions admitting bid coordination, the CCI found that HP India controlled reseller bid prices and influenced their GeM participation by selectively withholding authorisations to favour its own bids. Five resellers were held guilty of collusion.[2]

In the Cartridges Case[3], the CCI imposed ₹11.98 crore on HP India and approximately ₹2.30 crore on 16 resellers. Evidence included emails, WhatsApp messages among HP India officials and between resellers, and a video recording and transcript of an HP India-reseller meeting. The CCI found that all 16 resellers provided and solicited cover bids to manipulate tender outcomes, while HP India selectively authorised participation to help achieve its sales targets.

The resellers contended that their vertical relationship with HP India could not constitute a horizontal arrangement under Section 3(3). The CCI rejected this, noting that both participated as GeM bidders and competed against each other, with each emerging as L-1 bidders in different tenders. They were therefore in a horizontal competitive relationship while bidding and subject to Section 3(3).

A similar argument was considered in In re: Nagrik Chetna Manch and Fortified Security Solutions & Ors. [4] and In re: Cartelization in respect of tenders floated by Indian Railways for supply of Brushless DC Fans and other electrical items[5]. In both cases, the CCI held that parties competing in the same tender are competitors under Section 3(3)(d), irrespective of their relationship or other business activities. The CCI further observed that treating such parties as non-competitors could defeat the purpose of Section 3(3)(d).

Finding a contravention of Section 3(3)(d) read with Section 3(1), the CCI imposed penalties and issued cease-and-desist orders under Section 27. Individual officials were also held personally liable under Section 48.

Business Takeaway: Businesses should undertake proactive competition compliance programmes to sensitise sales and operational personnel to the risks of communications with competitors. Regular training on information-sharing relating to tender participation and pricing can help mitigate cartel liability risks for the business and responsible individuals.

[1] CCI: In re: Cartelisation amongst HP India and its resellers in the sale and supply of Personal System Products in India, Suo Moto Case No. 07 of 2020, order dated 13 July 2026.

[2] OP-7 (Thoughtsol Infotech Pvt. Ltd.), was represented by King Stubb & Kasiva’s Competition Law Team, led by Partner Aniket Ghosh. OP-7 and the individuals associated with it were fully exonerated by the CCI.

[3] CCI: In re: Cartelisation amongst HP India and its resellers in the sale and supply of Supplies Products in India, Suo Moto Case No. 08 of 2020, order dated 13 July 2026.

[4] CCI: In re: Nagrik Chetna Manch and Fortified Security Solutions & Ors., Case No. 50 of 2015, order dated 1 May 2018.

[5] CCI: In re: Cartelization in respect of tenders floated by Indian Railways for supply of Brushless DC Fans and other electrical items, Suo Moto Case No. 03 of 2014, order dated 18 January 2017.

Last Updated on 21 August, 2026