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HP, Staples Face Ink Cartridge Price-fixing Allegations
A California man filed suit against printer manufacturer HP and office-supply retailer Staples Inc. in federal court on Monday, alleging the two companies broke antitrust law in a price-fixing collaboration on ink cartridge sales. Ranjit Bedi of Pacific Palisades, California accused HP of approaching Staples Inc. in 2006 with at least $100 million in "market development funds" and incentives, in exchange for an agreement to stop selling third-party HP-compatible ink cartridges. According to the lawsuit, Staples then used HP's exclusivity to raise prices on the HP cartridges it offered. Staples is the largest retailer of aftermarket ink in the United States, with profits from HP-compatible ink sales exceeding $300 million in 2006. Of that total, $75 million came from the sale of third party ink.