The local arm of international technology business HP did not know an official competition complaint had been laid against it, it says.
“HP SA has received no formal notification of Mustek's complaint lodged with the Competition Commission. HP is currently looking into the matter and will provide more information as it becomes available,” said the company in response to ITWeb's query.
Yesterday, JSE-listed Mustek formally accused the international group of anti-competitive practices in a complaint lodged with the Competition Commission. Mustek MD Hein Engelbrecht says the trouble has been brewing over the last two years and the company is now ready to take its global rival to task.
Mustek believes HP has contravened five of the sections in the Competition Act. Engelbrecht says HP has been selling its products under their marginal cost, which would force the local company to do the same and possibly run at a loss.
It claims HP has also been discriminatory on price, engaged in resale price maintenance and price discrimination. Combined, these practices drive down resellers' profits, by fixing ceilings or floors to the resell value of a product.
The final accusation against HP listed in Mustek's complaint says the technology company has incentivised customers to not deal with competitors.
“This complaint has been lodged in the interest of free and fair trade,” says Engelbrecht.
The Competition Commission is expected to investigate; however, it had not responded to ITWeb's query at the time of publication.
Share
