CCI Imposes ₹126.87 Crore Penalty on HP India for Cartelisation in Personal System Products
Overview of the CCI Order
The Competition Commission of India (CCI) delivered a significant ruling on 13th July 2026, invoking its powers under Section 27 of the Competition Act, 2002, to penalise HP India and a group of its authorised resellers for engaging in anti-competitive behaviour in the sale and supply of personal system products across India.
The order marks a notable enforcement action in the technology products procurement space, particularly concerning tenders floated on the Government e-Marketplace (GeM) platform. The total financial penalty imposed across all parties runs into approximately ₹128.09 crores, signalling the Commission's firm stance against bid manipulation and collusive conduct in public procurement.
Parties Involved
HP India
HP India, the principal entity in this matter, bore the heaviest financial consequence, with the CCI imposing a penalty of INR 126.87 crores upon it. As the market-dominant original equipment manufacturer (OEM), HP India's role in orchestrating the cartel was found to be central and directive in nature.
Five Resellers
The following five resellers were found to have acted in collusion with HP India, each attracting individual monetary penalties, with the combined penalty across all five resellers amounting to approximately INR 1.22 crores:
- Delphi Infosolutions
- Digitech Computers
- Orbit Techsol
- Hind Technocare
- Krishna Computers
How the Proceedings Were Initiated
Lesser Penalty Application by HP India
In an unusual procedural development, the proceedings in this matter were not initiated through a third-party complaint or the Commission's suo motu cognisance. Instead, HP India itself approached the CCI by filing a lesser penalty application under Section 46 of the Competition Act, 2002, read with Section 19(1)(a) of the Act, disclosing the existence of cartelisation amongst itself and its resellers.