Policy · Enterprise Software & IT
HP India fined for bid-rigging in government tenders
By Startup Enthusiast ·
- Date
- Company
- HP India
- What it does
- Computer and printer manufacturer
- Kind
- Policy
- Amount
- Rs 126.87 crore
- Sector
- Enterprise Software & IT
What they do
HP India manufactures computers and printers for the Indian market
What happened
The Competition Commission of India fined HP India Rs 126.87 crore for manipulating GeM tender bids with resellers between 2017 and 2020
Why it matters
The regulator rejected HP's defense that resellers forced the collusion to meet sales targets
The details
- The Competition Commission of India found HP India guilty of bid-rigging in GeM (Government e-Marketplace) tenders from 2017 to 2020.
- HP India coordinated bids among resellers by selectively issuing Manufacturer Authorisation Forms to block genuine competitors.
- Resellers engaged in cover bidding by submitting artificially high bids to let a pre-selected party win.
- The collusion began when the company transitioned to the GeM portal in 2017.
- HP India argued it was forced into the arrangement by resellers threatening to shift to counterfeit products.
- Resellers claimed they coordinated pricing to meet HP India's sales targets.
- The CCI rejected both defenses and concluded the bidding process was deliberately manipulated.
- HP India filed a leniency application under Section 46 of the Competition Act and received a lesser penalty.
The bigger picture
- The case originated from HP India's leniency application as it was the first to report the violation.
- The regulator directed parties to stop practices and conduct compliance training within 60 days.
- Officials of HP India were held personally liable under Section 48 of the Act.
About the business
- HP India sells personal system products including computers and laptops.
- The company also supplies printer ink and toner cartridges through various channels.
- It operates on the Government e-Marketplace for public sector procurement.
- The company previously used legacy 'Most Valuable Customer' accounts before the GeM transition.
- HP India faces penalties for manipulating its distribution network for government contracts.
What happens next
- Parties must stop the anti-competitive practices immediately.
- Companies must conduct compliance training within 60 days.
The deal
- Type
- penalty
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