CCI ad raids: Document reveals probe into global ad firms over alleged commission collusion
An antitrust document details how top ad agencies and industry groups allegedly coordinated pricing, triggering raids and an investigation.
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India’s top antitrust authority has accused several of the world’s largest advertising firms of colluding on commission rates charged to clients, a move that prompted a series of unannounced raids in March and signals intensified scrutiny of the country’s booming media sector.
Referring to a previously undisclosed document, Reuters reported today that the Competition Commission of India (CCI) alleges that global advertising conglomerates, including WPP-owned GroupM, Interpublic, Publicis, and Dentsu, participated in coordinated practices that violate Indian competition laws. The raids, which took place at the Indian offices of the firms as well as two influential industry associations, followed an internal CCI review that suggested the misconduct dated back at least to early 2023.
The 16-page CCI document, dated February 7, outlines how sensitive commercial information was exchanged via WhatsApp and during virtual meetings organized by industry bodies, the report stated. The findings, as reported in the article, suggest that three distinct "cartels" may have operated simultaneously under the aegis of the Indian Society of Advertisers (ISA), the Advertising Agencies Association of India (AAAI), and the Indian Broadcasting and Digital Foundation (IBDF).
The commission’s report alleges that the AAAI not only facilitated the coordination of commission structures but also devised retaliatory measures against members who deviated from agreed-upon practices. In one instance, it claims, the group established a standard formula for determining fees in service-based contracts, a move the CCI contends breaches competitive norms.
“The AAAI and its members are in contravention of the Act,” the report states, referring to India’s Competition Act of 2002. It adds that all three groups engaged in what it termed “collective negotiations” on issues that should have been decided independently by firms.
The investigation, sparked by disclosures made by Dentsu under a federal whistleblower program, has cast a long shadow over India's rapidly evolving media and advertising landscape.
Read More:CCI raids at dentsu, GroupM, IPG, Madison, Publicis fuel unrest; stakeholders demand fair probe
The Reuters report added that among the CCI’s most striking findings is the suggestion that a "buyer’s cartel" was established among advertisers, while broadcasters allegedly undertook "collective action" to avoid offering discounts to clients. The commission further warned that efforts may be underway to expand collusion into the creative services segment of the advertising business.
In response to the intensifying scrutiny, the AAAI has privately urged its members in recent weeks to refrain from pricing discussions during internal meetings, mandating the presence of legal counsel when such topics arise.
