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Madison moves Delhi High Court to quash antitrust probe into ad agency: Reuters
The ad agency has challenged the CCI’s investigation, alleging unlawful questioning of executives during midnight raids and denial of legal access, marking the first court plea to halt the ongoing industry-wide probe, as per a media report.
According to the court documents, the CCI has also summoned Balsara and Sakhuja to appear before its investigation team next week for further clarifications- a move that Madison is also seeking to have quashed.
India’s Madison Communications has reportedly approached the Delhi High Court seeking to quash an ongoing antitrust investigation into the advertising agency, contending that its executives were unlawfully questioned during March raids without legal counsel present, according to court filings reviewed by Reuters.
Madison was among several ad agencies and broadcasters raided by the Competition Commission of India (CCI) on suspicion of collusion over advertising rates and discounts, in what has been described as the most extensive regulatory crackdown on the sector so far.
Read more: CCI ad raids: Document reveals probe into global ad firms over alleged commission collusion
Other agencies searched during the operation included global majors such as WPP’s GroupM, dentsu, Publicis, and Omnicom.
Filed on October 8, Madison’s petition marks the first legal challenge seeking to halt the probe into any of the ad agencies. The 276-page filing alleges that Madison’s Chairman Sam Balsara and Executive Director Vikram Sakhuja were questioned “in the middle of the night, in the presence of armed personnel,” without being given the chance “to engage or consult lawyers before their statement was recorded,” the report added.
Madison further argues that the raids were rendered unlawful as the CCI failed to provide details of the documents and files seized during the searches- an omission the company claims violates Indian legal requirements, the report adds.
The antitrust investigation stems from information provided by dentsu in February 2024 under the CCI’s leniency programme, which allows reduced penalties for entities that voluntarily disclose evidence of malpractice. Initial findings by the regulator indicated that the firms had allegedly formed secret agreements to coordinate pricing through a WhatsApp group, according to confidential case documents cited by Reuters.
Read more: CCI raids at dentsu, GroupM, IPG, Madison, Publicis fuel unrest; stakeholders demand fair probe
The case is set to be heard by a New Delhi judge on Thursday , who may decide to hear Madison’s arguments in ful- which could lead to hearings spanning weeks- or dismiss the petition. The court could also consider temporarily halting the CCI’s probe.
It is to be noted that Publicis had in August petitioned the Delhi High Court to direct the CCI to grant it access to certain case files. The court has since asked the regulator to clarify its stance and is also scheduled to hear Publicis’s matter on Thursday. However, Publicis has not sought to quash the investigation into itself.
According to the court documents, the CCI has reportedly also summoned Balsara and Sakhuja to appear before its investigation team next week for further clarifications- a move that Madison is also seeking to have quashed.
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