Listed computer distributor Mustek will not take its failed complaint, that HP was being anti-competitive, any further.
Mustek had complained to the Competition Commission that HP was being anti-competitive, because the US-based company was undercutting PC prices in the rest of the market. The commission, however, dismissed the complaint as it could not prove that HP was a dominant player.
Mustek CEO and founder David Kan says, although the company can pursue the matter with the Competition Tribunal on its own, it has decided against this route.
Kan explains that under competition law, it would be difficult to prove that HP was a dominant player, which would weaken its case against the US company. He says HP does not have 45% of the local notebook and desktop market.
Mustek had complained that HP was using its marketing funds to push down the prices of PCs in the local market, which was anti-competitive and undercut other players, says Kan. “We don't have any intention to take this matter further,” says Kan.
Hedy Gorton, PR manager for HP Enterprise Business, says: “HP SA was in no doubt that we were operating within the confines of the anti-competitive guidelines and we are pleased to put this issue to rest.”
Mustek's complaint, accusing HP of contravening five sections of the Competition Act, was filed in 2009.
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Mustek still in talks
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