The Competition Commission of India (CCI) has imposed a cumulative fine of ₹138.9 crore on HP India for anti-competitive practices and cartelisation on the Government e-Marketplace (GeM) platform. The penalty covers two cases involving rigged tenders for personal computer systems and printing supplies, including toners and cartridges, according to inc42.com.
CCI's investigation found that HP India dictated bid prices to its resellers and withheld necessary authorisations to manipulate reseller participation in GeM tenders for personal systems. In the second case, HP coordinated cover bids among resellers to submit artificially high bids, ensuring a pre-selected party won the tender. HP India was fined ₹126.9 crore, while five resellers—Delphi Infosolutions, Digitech Computers, Orbit Techsol, Hind Technocare, and Krishna Computers—were collectively fined ₹1.2 crore for collusion.
The cases originated from a lesser penalty application filed by HP India under Section 46 of the Competition Act, alleging cartelisation between the company and its resellers. The CCI found clear evidence of bid price dictation and manipulation of reseller participation, which stifled competition on the GeM platform. This ruling highlights the regulator's strict stance against tender rigging in government procurement, a sector critical for fair market practices.
The CCI's orders mark one of the largest penalties in recent years related to government e-marketplace tender rigging. The commission’s detailed findings and penalties were issued this week, reinforcing regulatory scrutiny over procurement processes on digital platforms like GeM.