Breaking: Delhi HC seeks CCI reply as Madison challenges ‘One-Sided’ competition probe

The Delhi High Court on Monday directed the Competition Commission of India (CCI) to file its response within two weeks to a petition by Madison Communications Pvt. Ltd., marking a key development in the ongoing confrontation between one of India’s largest advertising agencies and the country’s competition watchdog. The matter will now be heard next on December 8.

Madison had approached the court challenging the CCI’s investigation into alleged collusion within the advertising sector, arguing that the probe has incorrectly targeted agencies while ignoring what it claims is a “buyers’ cartel” formed by major advertisers under the Indian Society of Advertisers (ISA).

According to the petition, the case stems from a leniency application filed in February 2024, which Madison says had “primarily alleged buyers cartel by advertisers under the platform of ISA.” Yet, the agency argues, the subsequent investigation and a 20-hour search and seizure operation at its Mumbai office in March 2025 reflect a skewed enforcement approach that has overlooked the advertisers’ role.

Madison has cited the CCI’s own Prima Facie Order, which referred to a Model Agency Agreement (MAA) allegedly circulated by ISA. The petition notes that the MAA curtailed room for negotiation between advertisers and agencies and undermined agencies’ revenue models. Madison, a member of the Advertising Agencies Association of India (AAAI), contends that agencies were the ones adversely impacted, and that AAAI’s own guidelines on media agency remuneration were issued only to protect its members from ISA’s conduct.

The company has accused the CCI of “excessive delegation” by permitting its Director General to widen the inquiry beyond the allegations in the leniency application. It has further alleged discriminatory treatment, pointing out that while its offices were subjected to a sweeping search, no such action was taken against ISA or its members.

Chairman Sam Balsara and Executive Director Vikram Sakhuja, who are also petitioners, have argued that the DG’s actions caused reputational harm and were arbitrary in nature. Madison is seeking quashing of the search and seizure operation, annulment of the Prima Facie Order, and withdrawal of summons issued to its senior leadership.

The case, which raises questions about the boundaries of competition enforcement in India’s advertising industry, will continue before the bench led by Justice Sachin Dutta on December 8.