WhatsApp Sting: Dentsu CEOs secretly fed chat intel to CCI amid probe
While media insiders maintain that no incriminating price-related exchanges occurred in the chat, the optics have proven damning.
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What seemed like just another industry WhatsApp group has now become ground zero in a sensational corporate drama — one that has shaken the foundations of the media agency world and exposed deep fractures beneath a facade of unity. The crux: a confidential WhatsApp group, two Dentsu executives, and an undercover mission by the Competition Commission of India (CCI).
In March 2024, the CCI swooped down on nearly 10 locations in a high-stakes raid targeting several top advertising agencies — Dentsu, GroupM, Publicis, Havas, IPG, Madison — and industry bodies like the AAAI, ISA, and IBDF. The charge? Alleged cartelization — fixing of ad rates and discounts in violation of Section 3(3) of the Competition Act.
But what triggered this massive regulatory strike? As it turns out, the whistle-blower was one of their own.
On Thursday, Dentsu dropped a bombshell: it had proactively approached the CCI in February 2024 under the leniency framework, claiming the move was aimed at “driving reform from within.” What’s more, while quietly collaborating with regulators, two Dentsu executives- CEO, Dentsu South Asia and then CEO, Media, South Asia — remained active participants in a high-level WhatsApp group that included the who’s who of Indian advertising.
The group featured top brass such as Group CEO at Omnicom Media, CEO of WPP Media India, CEO of IPG Mediabrands, CEO of Havas Media, Chairman of Madison World, Publicis South Asia chief, And of course, Dentsu’s own executives — now revealed as whistleblowers.
According to a senior executive of a top media agency and member of the WhatsApp group said, “Both Dentsu executives stayed on the WhatsApp group till the very end. They were snooping on routine conversations and relaying them to the CCI. They even submitted emails with CCI pertaining to AAAI.” The group, once a space for peer discussions, was hastily abandoned post CCI raids after the AAAI issued an advisory warning agencies to stop any communication that could be interpreted as anti-competitive.
When asked if Dentsu’s admission to be a whistleblower will impact them, the executive said, “Formally, we won’t issue any diktat against Dentsu because we are global companies and our lawyers are guiding us so that we are correct and now following their instructions.”
Now, with industry heavyweights gathered at Cannes for the annual advertising spectacle, private murmurings are turning into public consequences. “There are chances that informally decisions will be made to boycott Dentsu for falsely accusing its rivals,” said a source at a competing agency.
While media insiders maintain that no incriminating price-related exchanges occurred in the chat, the optics have proven damning. The AAAI has since reminded agencies to establish pricing strategies independently and avoid any direct or indirect exchange of sensitive information.
Dentsu in a statement to Storyboard18 said, "Dentsu India is among the country’s leading agency networks and with that comes the responsibility to act with integrity and accountability. We had a choice – to remain passive or drive change."
"In February 2024, we proactively approached the Competition Commission of India (CCI) suo moto under its Leniency framework. This was not a reaction to external pressure but a decision to support reform from within."
"We proactively implemented meaningful changes including enhanced audits, stricter governance, and tighter internal controls. These reflect our ongoing commitment to build trust through transparency, action, and accountability to safeguard the interest of our clients."
"Change can't be affected by walking away – this may be a challenging moment for an industry we are proud to be a part of, but it also presents an opportunity for collective reform. At Dentsu India we are committed to this change for our clients and the future of a thriving industry."
Legal experts suggest that this investigation could have far-reaching consequences for the advertising and digital media industry. If CCI establishes that major players engaged in anti-competitive practices, it could lead to hefty fines, regulatory action, and a complete overhaul of media-buying strategies in India.
Under Section 3(3) of the Competition Act, 2002, agreements between companies within the same industry that directly or indirectly determine pricing or restrict competition are illegal. The investigation will focus on uncovering evidence such as internal emails, pricing agreements, meeting records, or coordinated rate cards that could indicate anti-competitive behavior.
Storyboard18 has reached out to Dentsu for a response. The article will be updated when we receive a formal response.
