Gaming
From Valsad to SC: Justice Pardiwala holds fate of $3 billion gaming industry, 2 lakh jobs
CCI ad raids: Omnicom leadership's WhatsApp chats key evidence in media cartel probe
On October 5, 2023, an Omnicom Media Group leader's chats in a WhatsApp group of senior advertising executives surfaced as evidence after Omnicom accused a rival of attempting to undercut industry “understandings” by offering lower prices to its client.
The Competition Commission of India’s (CCI) investigation into alleged cartelization among top media agencies and industry bodies uncovered WhatsApp messages from an Omnicom Media Group’s leader, which are now being treated as key evidence, top sources told Storyboard18. This development comes in during Omnicom-IPG merger across multiple markets including India.
The regulator had earlier conducted raids on leading media agencies, including Dentsu, Omnicom, Havas, Madison, IPG, GroupM, and Publicis, as well as on industry bodies such as the Advertising Agencies Association of India (AAAI), the Indian Society of Advertisers (ISA), and the Indian Broadcasting and Digital Foundation (IBDF). The searches were carried out over allegations of collusion, signaling heightened scrutiny on India’s advertising sector.
According to documents, AAAI had circulated guidelines in August 2023 mandating that agencies charge clients with annual spends above $29 million a minimum commission of 3% for digital advertising and 2.5% for traditional media. Clients with lower spends were required to pay higher commissions, up to 8%. The following month, industry associations signed a joint pact agreeing that no agency would “unilaterally offer any discount” while pitching for business.
On October 5, 2023, the OMG leader's chats in a WhatsApp group of senior advertising executives surfaced as evidence after Omnicom accused a rival of attempting to undercut industry “understandings” by offering lower prices to its client.
“The attempt to woo the client violated the agencies' agreement,” they wrote in the group, which included top executives from IPG, Publicis, Madison, Dentsu, Havas, and GroupM (now WPP Media), according to excerpts now documented by investigators and confirmed to Storyboard18.
“This kind of practice is not in the spirit of what we are collectively trying to achieve,” the message added, without naming the parties involved.
Tensions heightened when ITW Consulting, previously ostracized by industry bodies (in August 2023) for violating the pact, struck a direct deal with one of Omnicom’s clients for Hotstar (then under Disney) during the Cricket World Cup. “This nuisance has to stop,” the messages read in the group, after executives learnt ITW had engaged in another direct deal.
The group chat accessed by CCI also found that the group had discussed advertising pitches and coordinated approaches to clients in sectors including food delivery, pharma, BFSI and e-commerce. The CCI has document two industry dossiers as evidence.
Storyboard18 was first to report that a leniency petition filed by a media agency triggered the CCI probe and subsequent raids.
Dentsu, in a statement had acknowledged approaching the regulator voluntarily. “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,” the company said.
“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.”
Meanwhile, the probe has taken another turn as French advertising giant Publicis filed a lawsuit against the CCI, alleging it was denied access to crucial case records in the ongoing investigation.
SPOTLIGHT
Big-ticket buying decisions now demand more than just logic and product specs – they require trust, emotional connection, and brand stories that resonate.
Read MoreExplained: What the Online Gaming Bill means for the industry, users and platforms
The Online Gaming Bill 2025 imposes severe penalties, allows warrantless search and seizure, and empowers a central authority to regulate the digital gaming ecosystem. It is expected to disrupt platforms, payment systems, and advertising in the sector. Here's all you need to know about the bill.