China Warns HP: Don’t Make Printers Incompatible with Third-Party Toner Cartridges
Deal Street Asia reported that yesterday, the government of the People’s Republic of China has approved HP Inc.’s $1.1 billion purchase of Samsung Electronics’ Printing Solution business (now called S-Printing Solution Company), but cited concerns about an HP-Samsung merger could dominant China’s A4 laser-printer market.
In a statement issued late on Thursday, China’s Ministry of Commerce said that sales of A4 laser printers by HP in China should be done on “fair and reasonable” terms, and that every six months, HP must report to the ministry on its prices and related data.
The ministry also said HP cannot buy a stake in other A4 printer manufacturers in China, even if it’s a minority investment.
Last – and probably what will be most troublesome for HP – the ministry said that HP must not adapt its printers to restrict compatibility with third-party supplies, or claim in advertising that its printers are not compatible with third-party suppliers. Currently, HP laser and inkjet printers and MFPs are designed to reject the use third-party cartridges – although it has issued firmware updates after opposition to the blocking of third-party ink cartridges. Overall, HP strongly discourages the use of third-party ink or toner cartridges..
HP iexpects to close the Samsung acquisition in the fourth quarter of 2017.
With the acquisition, HP would add an intellectual property portfolio of more than 6,500 printing patents and nearly 1,300 researchers and engineers with expertise in laser-printer technology, imaging electronics, and printer supplies.
- July 2017: Samsung to Withdraw from Printer Manufacturing Once Printer Business Acquired by HP
- April 2017: European Regulators Give Green Light to HP’s Acquisition of Samsung Printing Business
- April 2017: HP Shipping A3 LaserJets, PageWides, as it Begins Bold Venture into A3 Copier Market
- December 2016: Samsung Provides More Key Info on HP’s Acquisition of its Printing Solutions Group
- November 2016: Samsung Lays Out Road Map for Merging Printing Solutions Group with HP Inc.
- November 2016: New Samsung Smart MultiXpress M5360RX A4 MFP with Faster Touch Screen, Smart UX Apps
- November 2016: New Samsung Update Enables Samsung Galaxy Users to Print to Millions of Printers
- November 2016: HP Inc. Marks 1st Anniversary: Looks Back on its 3D Printers, Samsung Acquisition, Copier-Market Disruption
- November 2016: Samsung Forms ‘S-Printing Solution’ Company Prior to Sale to HP; Compensates Samsung Employees for ‘Job Security’ Issues
- October 2016: Canon Discusses Implications of HP’s Acquisition of Samsung Printer Business
- September 2016: IDC: HP’s Acquisition of Samsung’s Printing Group Will Break Hold of Fuji Xerox, Canon, and Ricoh in China
- September 2016: Samsung Board Approves Sale of Printer Business to HP; Will Continue to Source Printers from HP
- September 2016: HP Set to Purchase Samsung’s Printer Group for $1.05 Billion As it Prepares for Assault on Copier Market