CCI Raids: AAAI's advisory to agencies could backfire, say experts

Empowered under section 36 of the Competition Act, 2002, which grants the Commission extensive regulatory powers. These include summoning individuals, enforcing document production, examining witnesses, and requisitioning records from various offices.

By  Imran FazalApr 7, 2025 4:55 PM
CCI Raids: AAAI's advisory to agencies could backfire, say experts

A recent advisory issued by the Advertising Agencies Association of India (AAAI) to media agencies has raised concerns regarding potential repercussions, bringing the matter under the Competition Commission of India's (CCI) lens. This move has the potential to escalate the ongoing investigation into alleged media cartelization, possibly exposing media agencies and industry bodies to further scrutiny.

The decision to issue an advisory comes in the wake of CCI raids on several major media agencies, including Dentsu, Omnicom, Havas, Madison, IPG, GroupM, and Publicis. The raids also extended to industry bodies such as the AAAI, the Indian Society of Advertisers (ISA), and the Indian Broadcasting and Digital Foundation (IBDF). These investigations highlight the intensifying scrutiny on alleged anti-competitive practices within the media sector.

According to sources, the AAAI’s advisory, issued on March 26, directed media agencies to refrain from any direct or indirect exchange of price-sensitive information. It also emphasized that agencies must establish their pricing strategies independently, without sharing such details with competitors.

Competition lawyer Aniket Ghosh noted that the advisory could potentially backfire, leading to adverse action by the CCI. He pointed out that the very act of issuing a directive suggests that media agencies were previously coordinating their actions. This, in turn, could strengthen the CCI’s case against them.

Empowered under section 36 of the Competition Act, 2002, which grants the Commission extensive regulatory powers. These include summoning individuals, enforcing document production, examining witnesses, and requisitioning records from various offices.

A senior lawyer said, "The CCI can demand the copy of advisory for further scrutiny and it can also probe the matter further for potential irregularities in the advertising sector and determine whether anti-competitive practices have influenced media transactions."

As the CCI intensifies its probe, the media industry faces an uncertain future, with potential ramifications for agencies involved. The outcome of this investigation will likely set a precedent for how media agencies operate in India.


Tags
First Published on Apr 1, 2025 10:03 AM

More from Storyboard18

Brand Makers

Show of Unity: Top leaders of Omnicom, Publicis, IPG, Havas and WPP together at Cannes Lions 2025

Show of Unity: Top leaders of Omnicom, Publicis, IPG, Havas and WPP together at Cannes Lions 2025

Advertising

Meta cracks down on AI app creating fake nudes without consent

Meta cracks down on AI app creating fake nudes without consent

Advertising

WATCH: Cannes Lions 2025 winners from Day 1; Publishing, Audio, Outdoor and more

WATCH: Cannes Lions 2025 winners from Day 1; Publishing, Audio, Outdoor and more

Advertising

A decade after its peak, Cannes Lions entries are down 38 percent

A decade after its peak, Cannes Lions entries are down 38 percent

Advertising

WhatsApp to introduce advertising in major business shift

WhatsApp to introduce advertising in major business shift

Advertising

Cannes Lions sees global surge in creativity - but no mention of India in growth narrative

Cannes Lions sees global surge in creativity - but no mention of India in growth narrative

Brand Makers

Ad agency subtract agency: Shubhranshu Singh writes from Cannes Lions 2025

Ad agency subtract agency: Shubhranshu Singh writes from Cannes Lions 2025

Advertising

Global Ads Spotlight: This AT&T campaign didn’t just talk inclusion - it delivered it on the field

Global Ads Spotlight: This AT&T campaign didn’t just talk inclusion - it delivered it on the field