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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. 

<a href="https://www.storyboard18.com/agency-news/breaking-dentsu-breaks-silence-admits-to-blowing-whistle-in-ccis-media-cartel-probe-71048.htm">Read More: Breaking: Dentsu breaks silence, admits to blowing whistle in CCI’s media cartel probe</a>

<a href="https://www.storyboard18.com/agency-news/cci-raids-leniency-program-blows-the-lid-off-media-cartelization-59805.htm">Read More: CCI raids: Leniency Program blows the lid off media cartelization</a>

<a href="https://www.storyboard18.com/special-coverage/cci-raids-on-media-cartel-a-week-later-ad-agencies-still-in-the-dark-60176.htm">Read More: CCI raids on media cartel: A week later, Ad agencies still in the dark</a>

WhatsApp Sting: Dentsu CEOs secretly fed chat intel to CCI amid probe

Sanchayeeta Verma, Chief Executive Officer of Carat India has moved on from the agency. Sources close to the development have confirmed to Storyboard18. 

Carat India, the media agency from the house of dentsu in 2023 had announced the appointment of Sanchayeeta Verma as chief executive officer (CEO).

Verma was appointed CEO of Carat India in 2023. Based out of Bengaluru, she was brought on board to steer the dentsu-owned media agency’s growth trajectory with a focus on strategic leadership. During her tenure, she also played a key role in mentoring talent, driving new business opportunities, and strengthening client relationships.

Before joining dentsu, she held various senior management positions at GroupM's Mindshare and Wavemaker.

Verma is a senior business leader with a 27-year of experience in the advertising, media and marketing industries. Over the years, she has gained expertise while navigating through streams across media, content, data, and technology.

She has worked across companies such as Lintas Media Group, JWT, Kiwi TTK, etc.

Verma has experience across diverse categories including FMCG, durables, telecom, finance, retail, e-commerce, fashion, and lifestyle, servicing brands like ITC, Titan Company Ltd, Google, Tata Global Beverages, Myntra, Wipro Consumer Care, Nestle, GSK, Motorola, Kellogg’s, Ford, ICICI, Castrol, DTC, Nike, PepsiCo among others.

Storyboard18 reached out to Dentsu India for an official comment. Story will be updated when we receive an official comment from the agency. 

Dentsu’s Carat India CEO Sanchayeeta Verma quits

Three months after the Competition Commission of India (CCI) raided several top advertising agencies and industry bodies over alleged cartelization, Japanese media conglomerate Dentsu has confirmed that it was the whistleblower behind the investigation — a move it says was aimed at driving “reform from within.”

The raids, conducted in March across nearly 10 locations, targeted prominent agencies including Dentsu, GroupM, Publicis, Havas, IPG, and Madison, along with industry associations like the AAAI (Advertising Agencies Association of India), ISA (Indian Society of Advertisers), and IBDF (Indian Broadcasting and Digital Foundation). The inquiry centers on allegations of fixing ad rates and discounts, potentially violating Section 3(3) of the Competition Act, 2002, which addresses anti-competitive horizontal agreements.

Storyboard18 on March 21 had first reported about CCI's leniency program blowing off the lid from alleged media cartelization. 

<a href="https://www.storyboard18.com/agency-news/cci-raids-leniency-program-blows-the-lid-off-media-cartelization-59805.htm">Read More: CCI raids: Leniency Program blows the lid off media cartelization</a>

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."

The CCI’s leniency program, which incentivizes cartel members to come forward in exchange for reduced penalties or immunity, has emerged as a key tool in uncovering covert agreements. By offering legal protections to the first cooperating entity, the program aims to break the code of silence that often surrounds cartel behavior.

Legal experts note that proving a cartel under Section 3(3) involves more than demonstrating parallel pricing — authorities must also show intent or coordinated action through direct or circumstantial evidence, such as communication records, trade body meetings, or synchronized rate changes.

<a href="https://www.storyboard18.com/agency-news/cci-raids-did-dentsu-blow-the-whistle-on-indias-media-cartel-59921.htm">Read More: CCI raids: Did Dentsu blow the whistle on India’s alleged media cartel?</a>

The outcome of the probe could be seismic. If sufficient evidence is found, it may lead not only to heavy fines for those involved but also to long-term reforms in how media buying is structured in India. CCI’s actions are being closely watched as a test case for regulatory enforcement in the high-stakes world of advertising and broadcasting.

CCI's introduction of leniency programs has led to a notable increase in successfully prosecuting the cartels. By providing a safe avenue for whistleblowers, these programs have uncovered cartels that might have otherwise remained hidden, enhancing the overall effectiveness of anti-cartel enforcement. 

Leniency programs reduce fines or offer immunity to the first cartel member who cooperates with authorities, thereby destabilizing the cartel's secrecy. The introduction of leniency programs has led to a notable increase in successfully prosecuting cartels.

According to CCI lawyers, proving a violation of Section 3(3) requires establishing an anti-competitive agreement between cartel members. The CCI must first demonstrate the existence of such an agreement, which can include any formal or informal arrangement, understanding, or action in concert. While direct evidence such as contracts, emails, or meeting records is ideal, the CCI often relies on circumstantial evidence like parallel pricing, identical bids, or communication via trade associations to infer collusion.

The CCI also considers "plus factors," additional indicators beyond mere parallel behavior, such as suspicious timing of price changes or communication records that suggest coordinated actions. However, unilateral price increases without evidence of coordination do not automatically constitute a violation.

As the investigation progresses, all eyes are on the CCI’s next moves. If strong evidence of cartelization emerges, hefty penalties and long-term regulatory reforms could reshape the media buying industry in India. One thing is certain—this crackdown is not just about punishing violators but about setting the tone for a more accountable and competitive future in media advertising.

Breaking: Dentsu breaks silence, admits to blowing whistle in CCI’s media cartel probe

The EMVIES—a Friday evening meant to dazzle, to celebrate, to immortalize the brilliance of Indian advertising. A night where the best in advertising agencies revel in their hard-earned glory. But this year, the 25th edition of the EMVIES did not roar with the usual grandeur. 

A night that has, for years, echoed with applause, laughter, and the clinking of celebratory glasses. But this year—this milestone 25th edition—was unlike any other. It did not roar. It did not sparkle. It did not triumph. Instead, it whispered, shrouded in an unsettling quiet, burdened under the weight of an industry in crisis.

The absence of top media agency heads spoke louder than any grand speech could. The Competition Commission of India raids last week on media giants - Dentsu, IPG, Omnicom, GroupM, Madis

on, Publicis—and industry bodies AAAI, ISA, IBDF had cast a long, ominous shadow over the celebrations.

Even the Advertising Club’s key faces—President Rana Barua and Vice President Dheeraj Sinha—were nowhere to be seen. The responsibility of carrying the night fell on the shoulders of Ad Club Joint Secretary Punitha Arumugam, Treasurer Mitrajit Bhattacharya, and former President Partha Sinha alongwith other committee members. 

"Maybe it's the ongoing raids that have kept everyone away,” murmured an insider, their voice tinged with trepidation. “Nobody wants to be seen discussing the very thing that could implicate them.”

Dentsu's key leadership team in India was nowhere to be seen. Their missing presence only fuelling further speculations.

In Dentsu's absence, rumours swirled that the Japanese ad network had already filed for leniency with the CCI. If true, this meant something far more damning—an admission of involvement, an attempt to mitigate damage, a desperate move to escape the worst. Had they chosen to recede into the shadows to avoid the blinding spotlight? Or was this a silent confession, a signal that they were at the heart of the storm that had engulfed the industry? 

Legal teams had sent out their mandates to media agencies: Do. Not. Speak. The whispers in the hall carried more weight than the trophies being handed out on stage. Conversations held in hushed tones, eyes darting over shoulders, an unspoken fear of being overheard.

“We have a clear mandate from the global team—say nothing,” a senior executive admitted. “This will all come together soon. The legal teams are ready.”

Adding fuel to the fire, a leaked advisory from the AAAI had become the evening’s dark punchline. An attempt to enforce silence had only amplified the noise. “Nobody takes AAAI advisories seriously,” an industry veteran remarked. A warning meant to enforce silence had, ironically, become an inside joke.

The stage still lit up with awards. Victories were still announced. But without the industry’s biggest names in attendance, it felt like applause in an empty theater. The EMVIES were meant to celebrate excellence, to immortalize the best. But this year, they stood as a stark reminder of an industry at a crossroads—caught between between glory and scrutiny.

However, the question remains - will the industry’s biggest event, Goafest, meet the same fate as the EMVIES? With the advertising world under intense scrutiny from antitrust watchdog, uncertainty looms large. As Goafest returns to its iconic setting in Goa this May, the real test will be whether top media agency leaders will participate with their usual enthusiasm or if caution will cast a shadow over yet another grand celebration.

A celebration in crisis: The EMVIES 25th edition haunted by CCI scrutiny

In a stunning turn of events, the usually reserved Japanese media giant, Dentsu, has shattered the industry’s silence, stepping out of the shadows to become a whistle-blower. Filing a leniency petition with the Competition Commission of India against alleged cartelization in media, Dentsu’s bold move has sent shockwaves through the advertising world, top industry sources told Storyboard18. 

But was it a choice made of free will, or was it the iron hand of its global headquarters forcing a seismic shift in India’s media landscape? 

Multiple insiders claim that the pressure came from Tokyo, nudging Dentsu’s Indian operations into a confrontation with its peers. The timing is no coincidence. For nearly a year, Dentsu had been noticeably absent from major industry events, distancing itself from the Advertising Agencies Association of India (AAAI) and signalling its quiet withdrawal from the alleged cartel.

Storyboard18 had first reported about the Competition Commission of India (CCI) leveraging its leniency program to crack down on alleged cartelization and price-fixing in the media advertising industry. Designed to encourage whistle-blowers within cartels to come forward, the program played a pivotal role in exposing secret collusions between major media agencies and broadcasters.

<a href="https://www.storyboard18.com/agency-news/cci-raids-leniency-program-blows-the-lid-off-media-cartelization-59805.htm">CCI raids: Leniency Program blows the lid off media cartelization</a>

The cracks in Dentsu’s relationship with the industry started showing when a top agency snatched two major accounts - an automobile giant and an FMCG behemoth. The account losses in 2023 also exposed the deep discounting and the controversial commission system that had long dictated industry pricing. A top industry source reveals, "This wasn’t just about ethics. Dentsu was wounded. Losing those accounts made them question the system - and their place in it. They had to fight back."

And so, the gloves came off. 

By early 2024, the Competition Commission of India (CCI) had already launched an investigation into cartelization in media. As the investigation gained momentum, Dentsu found itself in a precarious position - stay silent and risk being implicated, or break ranks and seek immunity. 

With the walls closing in, Dentsu had only one way out - cooperate or collapse. The decision was swift. The Japanese headquarters was alerted, and soon, the directive was clear: file for leniency, expose the cartel, and secure immunity.

For Dentsu’s top brass in India, still reeling from their financial setbacks, the decision was a no-brainer. They filed the leniency petition.

Dentsu’s gamble could bring redemption - or exile. The CCI’s leniency program offers protection to the first cartel member who comes forward, disrupting the tightly held industry secrets. 

A veteran industry leader warns, "Japanese firms are known for their integrity, but also their discretion. Dentsu’s move is unprecedented."

CCI investigations also disclosed that significant evidence also pointed towards Big Tech firms involvement in influencing ad pricing, digital media spending, and long-term media-buying agreements. If confirmed, this could expose an intricate web of anti-competitive behavior, with tech giants colluding with media agencies to dominate the digital advertising ecosystem.

CCI raids: Did Dentsu blow the whistle on India’s alleged media cartel?

The Competition Commission of India (CCI) has leveraged its leniency program to crack down on alleged cartelization and price-fixing in the media advertising industry. The leniency program, designed to encourage whistleblowers within cartels to come forward, played a key role in uncovering alleged collusion between major media agencies and broadcasters. However, the CCI officials were also probing media agencies around the commissions and guidelines framed by the industry bodies. 

The CCI raids conducted at offices of Dentsu, GroupM, Publicis, IPG and Madison alongwith industry bodies AAAI, ISA and IBDF on Tuesday continued till Wednesday morning. Sources close to the development stated that the officials took statements from the agency heads, collected data and asked questions around the commissions and the guidelines set by AAAI around commissions and ad rates. 

Akshayy S. Nanda, Partner at Saraf and Partners, emphasized the effectiveness of leniency programs in detecting and dismantling cartels. “These regulatory and investigating agencies have developed robust methodologies and programs, such as leniency programs, to effectively combat cartel activities. Leniency programs have significantly impacted the discovery and prosecution of cartels by incentivizing members to come forward with crucial evidence. These programs reduce fines or offer immunity to the first cartel member who cooperates with authorities, thereby destabilizing the cartel's secrecy.”

Nanda further noted, “The introduction of leniency programs has led to a notable increase in successfully prosecuting the cartels. By providing a safe avenue for whistleblowers, these programs have uncovered cartels that might have otherwise remained hidden, enhancing the overall effectiveness of anti-cartel enforcement. It is possible that the recent raid conducted by the CCI was on account of one of the companies blowing the whistle on the alleged price-fixing arrangement.”

Leniency programs reduce fines or offer immunity to the first cartel member who cooperates with authorities, thereby destabilizing the cartel's secrecy. The introduction of leniency programs has led to a notable increase in successfully prosecuting cartels.

CCI's approach 

The investigation aligns with Section 3(3) of the Competition Act, 2002, which addresses anti-competitive agreements, particularly horizontal agreements between enterprises engaged in similar trade or services, including cartels. Such agreements are presumed to cause an "appreciable adverse effect on competition" (AAEC) if they involve price-fixing or other anti-competitive practices.

According to CCI lawyers, proving a violation of Section 3(3) requires establishing an anti-competitive agreement between cartel members. The CCI must first demonstrate the existence of such an agreement, which can include any formal or informal arrangement, understanding, or action in concert. While direct evidence such as contracts, emails, or meeting records is ideal, the CCI often relies on circumstantial evidence like parallel pricing, identical bids, or communication via trade associations to infer collusion.

The CCI also considers "plus factors," additional indicators beyond mere parallel behavior, such as suspicious timing of price changes or communication records that suggest coordinated actions. However, unilateral price increases without evidence of coordination do not automatically constitute a violation.

Aniket Ghosh, a competition lawyer, highlighted the challenges of proving collusion: “To establish a cartel, the CCI needs to demonstrate an agreement—formal or informal—between media agencies and/or broadcasters showing that they colluded to fix ad prices. This can be done by examining emails, WhatsApp messages, meeting records, communications with third parties, and interviewing employees. Any agreement between competitors to fix prices or reduce competition is presumed to cause harm to competition. Once an agreement is identified, the burden shifts to the investigated parties to prove it does not harm competition, requiring them to demonstrate benefits or necessity, which is a high threshold to meet.”

Citing global regulatory actions, Natasha Treasurywala, Partner at Desai & Diwanji, noted, “Global regulators such as the FTC in the USA and the European Commission have taken stringent action against price-fixing arrangements. This crackdown will lead to greater transparency in collaborations between advertising agencies and broadcasters. Businesses will need to be more careful to ensure that the agencies they are dealing with are above board with their agreements and do not engage in such price-fixing activities.”

Market Impact and Future Implications

Neelambera Sandeepan, Partner at Lakshmikumaran & Sridharan Attorneys, provided insights into the current market landscape. “The broadcasting market in recent times has been significantly consolidated, especially following the CCI’s approval of the Reliance-Disney merger. Further, digital advertising platforms now account for the largest ad spends, as per recent CCI orders. While collaboration between advertising agencies and broadcasters may not necessarily be problematic, the CCI may scrutinize them under ‘vertical agreements’ in competition law parlance. Such agreements are tested for their market effects and are not automatically deemed illegal.”

Emphasizing the need for compliance, Unnati Agrawal, Partner at IndusLaw, said, “As CCI tightens its oversight, advertising agencies and broadcasters must shift towards compliance-driven, transparent, and flexible advertising models. They must engage in fair competition, which ultimately bolsters the advertising and broadcasting market in India.”

Siddharth Chandrashekhar, Advocate at the Bombay High Court, reinforced the seriousness of price-fixing allegations. “Price-fixing falls into a ‘per se’ violation category—once proven, no justification can save the erring entity. The onus is on the accused to prove that their conduct didn’t harm competition. In simpler terms: If CCI finds a cartel, the accused can't simply wriggle out by claiming, ‘But we had a good reason!’ The law assumes guilt unless proven otherwise—a legal tightrope for agencies and broadcasters alike.”

As the investigation progresses, all eyes are on the CCI’s next moves. If strong evidence of cartelization emerges, hefty penalties and long-term regulatory reforms could reshape the media buying industry in India. One thing is certain—this crackdown is not just about punishing violators but about setting the tone for a more accountable and competitive future in media advertising.

CCI raids: Leniency Program blows the lid off media cartelization

The advertising industry is calling on the Competition Commission of India (CCI) to conduct a comprehensive market study before taking any regulatory action against alleged cartelization. Stakeholders are emphasizing the need for a fair and transparent investigation, ensuring that legitimate competitive practices are not undermined by sweeping enforcement measures.

As the CCI wraps up its two-day raids and seizures at the offices of major media agencies and industry bodies, concerns are mounting over the scope and fairness of the probe. Many industry players worry that regulatory overreach could disrupt standard business practices, unintentionally stifling competition rather than fostering it. With the CCI’s investigation ongoing, industry players are urging the regulator to adopt a balanced approach that preserves fair competition without unnecessarily disrupting the advertising ecosystem.

Rahul Vengalil, CEO and co-founder of tgthr, highlighted the natural dynamics of the industry. “The big agencies control a significant part of the AdEx in India. With such large volumes of trade, it is natural for them to secure highly competitive pricing. That’s how this industry—and any industry—operates, and everyone has accepted this reality. The larger the buy, the better the pricing.”

However, Vengalil cautioned against potential market manipulation. “Things get blurry if and only if these agencies dictate terms to publishers on what rates they should offer to other agencies. At the moment, everything is speculative, and nothing has been proven. If such practices exist, they would be detrimental to the industry, particularly for emerging agencies and smaller advertisers.”

Need for a Market Research Study

Market studies are a widely used tool for competition authorities to assess the competitive landscape within an industry. Such studies help regulators understand market dynamics, existing regulatory frameworks, and their implications for competition. A well-executed market study can inform competition advocacy efforts and lead to recommendations for governments, sector regulators, businesses, and industry associations.

A senior industry executive, speaking on condition of anonymity, stressed the importance of a structured study. “CCI should conduct a market research study on the advertising industry before any intervention. During their investigation, officials were asking basic questions about industry guidelines and regulatory norms. A thorough study would help them understand the perspectives of media agencies, broadcasters, and industry bodies, ensuring that their probe remains balanced and informed.”

While media agencies face scrutiny, broadcasters argue that any regulatory action should take into account the financial realities of operating premium television channels and marquee events.

A leading broadcaster stated, “Before implementing any regulatory changes, CCI should recognize the economic realities of running high-value television properties and major events. Premium advertising slots, such as those for the Indian Premier League (IPL), warrant premium pricing due to high demand. A forced reduction in ad rates could significantly impact broadcasters’ revenue streams, affecting content production quality and overall industry sustainability.”

Broadcasters contend that market-driven pricing strategies allow them to invest in quality content, ensuring that audiences receive high-standard programming. They fear that regulatory interventions could distort market dynamics, leading to unintended consequences such as reduced investments in content creation and innovation.

Neelambera Sandeepan, Partner at Lakshmikumaran & Sridharan Attorneys, provided insights into the current market landscape. “The broadcasting market in recent times has been significantly consolidated, especially following the CCI’s approval of the Reliance-Disney merger. Further, digital advertising platforms now account for the largest ad spends, as per recent CCI orders. While collaboration between advertising agencies and broadcasters may not necessarily be problematic, the CCI may scrutinize them under ‘vertical agreements’ in competition law parlance. Such agreements are tested for their market effects and are not automatically deemed illegal.”

Sandeepan further said, "In case the collaboration is found to have caused harm to the market, penalty up to 10% of the average of the turnover for the last three preceding financial years may be imposed on the broadcaster and the advertising agency. Further, office bearers are also at risk of penalties up to 10% of the average of their income for the last three financial years."

As the debate continues, the CCI faces the challenging task of distinguishing between legitimate business practices and potential anti-competitive behavior. However, the CCI investigations reflects a growing concern about fair market practices and the need for transparency in advertising rate settings and commissions.

CCI must align with market realities, conduct industry research before any intervention: Stakeholders

As the sun set over Mumbai, New Delhi, and Gurugram on Tuesday, officials from Competition Commission of India continued to search offices of  GroupM, Publicis, Dentsu, Madison and IPG. The agencies find themselves at the center of a relentless investigation into price-fixing and colluding with broadcasters to set advertising rates. But what began as a crackdown on media agencies has now spiraled into a much larger probe. 

The raids finally ended on Wednesday morning when agency CEOs where allowed back into their swanky cabins. Inside the glass-walled offices of these advertising giants, a long and tense night unfolded. CEOs and senior executives were confined to their boardrooms under the watchful eyes of CCI officials. Sleep was a luxury none could afford as investigators meticulously cloned electronic devices, scrutinized hard drives, and pored over stacks of insertion orders and rate agreements.

“The officials didn’t just stop at emails,” an industry insider revealed. “They went straight for call data records. Every phone call, every text message—it’s all under scrutiny. The level of detail in this investigation is unprecedented.” But in the process, investigators stumbled upon something even bigger—digital evidence that hinted at potential involvement of Big Tech firms in digital media-buying deals.

Sources close to the investigation disclosed that this evidence also suggests major technology firms may have influenced ad pricing, digital media spending, and long-term media-buying agreements. If confirmed, this could expose an intricate web of anti-competitive behavior, with tech giants colluding with media agencies to dominate the digital advertising ecosystem.

Executives of industry bodies Indian Broadcasting and Digital Foundation (IBDF), the Advertising Agencies Association of India (AAAI), and the Indian Society of Advertisers (ISA) were caught off guard as investigators swiftly sealed office premises, confiscated mobile phones, and began combing through emails, financial records, and internal communications. 

The raids are the culmination of a months-long covert investigation into allegations that top ad agencies conspired to fix advertisement rates, eliminating fair discounts and rigging the market. The CCI had been silently gathering intelligence, monitoring irregularities, and waiting for the right moment to strike. The tip off which connected the dots from a GST probe at a leading media agency.

An anonymous source close to the investigation disclosed, “This wasn’t just a routine operation. It was a well-planned, high-intensity probe, designed to uncover the extent of coordination between agencies. The authorities knew where to look and whom to target.”

If found guilty, the accused firms could face catastrophic financial penalties—up to three times their profits for the duration of the alleged misconduct or 10% of their total revenue, whichever is higher. The fallout could send shockwaves across the industry, disrupting partnerships and changing the way media buying operates in India.

On Wednesday morning, investigators packed up hard drives, cloned phone data, and evidence logs, leaving behind a trail of shaken executives. The scrutiny is far from over—call data records are next in line for forensic examination, a move that could potentially expose deeper connections and clandestine agreements.

Legal experts predict the next steps may involve formal notices, court hearings, and high-profile summonses of top agency heads and potentially Big Tech executives. Meanwhile, the industry holds its breath, awaiting the aftershocks of the most significant antitrust operation in advertising world's history.

Industry experts believe this investigation could have a ripple effect, prompting advertisers to reassess long-standing media-buying contracts and broadcasters to distance themselves from alleged collusion. As investigators dig deeper, the advertising world is left with an unsettling question: Is this just the tip of the iceberg? With the CCI determined to follow every lead, the aftershocks of this historic raid could reshape India’s media and advertising landscape for years to come.

Overnight raids and sleepless CEOs: How CCI cornered media giants

The Competition Commission of India (CCI) will be broadening its investigation into the alleged cartelization and price-fixing practices in the advertising industry, now examining a potential Big Tech angle in the ongoing raids at major media agencies. CCI officials have discovered digital evidence suggesting possible involvement of Big Tech companies in digital media-buying deals. 

Sources claimed that a routine investigation by GST officials at a leading media agency led to an unexpected crackdown by the Competition Commission of India (CCI) on several major advertising agencies. CCI officials raided GroupM, Dentsu, Madison, Publicis, and IPG, along with industry bodies such as the Indian Broadcasting and Digital Foundation (IBDF), the Advertising Agencies Association of India (AAAI), and the Indian Society of Advertisers (ISA), as part of an inquiry into alleged cartelization involving ad pricing and discount manipulation.

Sources close to the investigation revealed that during the raids, CCI officials discovered digital evidence suggesting possible involvement of Big Tech companies in digital media-buying deals. This revelation has prompted the antitrust watchdog to intensify its scrutiny and expand its probe beyond just advertising agencies.

The nature of the evidence retrieved from the digital records of the raided media agencies remains undisclosed. However, officials suspect that certain Big Tech firms may have played a role in influencing ad pricing, digital media spending, and long-term media-buying agreements. These deals could potentially reflect anti-competitive behavior, such as restricting fair competition, predetermining ad rates, or influencing bidding processes in favor of select companies.

Apart from media agencies and tech firms, CCI has also set its sights on Fast-Moving Consumer Goods (FMCG) companies and some of the biggest advertisers in the country. These companies will be questioned regarding their dealings with ad agencies and their media-buying strategies.

Investigators are looking into whether FMCG giants benefited from exclusive media-buying agreements, negotiated discounts, or preferential treatment in advertising slots. If proven, such arrangements could point to coordinated efforts to manipulate advertising rates and distort market competition.

During the raids, senior executives and CEOs of leading media agencies were questioned about their long-term media-buying contracts with broadcasters and digital platforms. CCI officials are meticulously analyzing Release Orders (ROs), which are official documents that outline the terms of media-buying transactions, to detect any potential irregularities or signs of price collusion.

A key focus of the probe is whether these long-term deals were structured in a way that locked advertisers into non-competitive pricing structures, preventing smaller players from negotiating better rates. If CCI finds evidence of such practices, it could lead to severe penalties for both media agencies and their business partners.

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.

Meanwhile, companies under investigation have remained tight-lipped about the ongoing raids. When contacted, media agencies have declined to comment on the allegations and the nature of their dealings with Big Tech companies.

Breaking: CCI to expand media cartel probe, Big Tech & FMCG deals under scanner

A routine investigation by GST officials at a leading media agency led to an unexpected crackdown by the Competition Commission of India (CCI) on several major advertising agencies. CCI officials raided GroupM, Dentsu, Madison, Publicis, and IPG, along with industry bodies such as the Indian Broadcasting and Digital Foundation (IBDF), the Advertising Agencies Association of India (AAAI), and the Indian Society of Advertisers (ISA), as part of an inquiry into alleged cartelization involving ad pricing and discount manipulation.

Sources familiar with the matter revealed that CCI officials were reviewing key documents related to the investigation late into Tuesday night. The CEOs of the agencies were summoned for questioning and have been directed to appear at the CCI office on Wednesday.

The investigation is highly targeted, with agency executives facing specific inquiries about pricing practices. Sources also indicated that several other agencies are under scrutiny for suspected price collusion.

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.

In addition to the ad agencies, CCI officials also conducted searches at the IBDF office as part of the ongoing probe.

This enforcement action follows the CCI’s decision to investigate top advertising agencies and broadcasters over allegations of price-fixing and discount manipulation. The agencies are accused of colluding with broadcasters to set advertising rates, effectively limiting advertisers’ ability to negotiate fair and competitive pricing. If proven, the allegations suggest that large advertisers, who rely on these agencies for media planning and ad placements, may have been systematically overcharged through coordinated manipulation of discounts, commissions, or bidding processes.

If found guilty, media agencies could face penalties of up to 10% of their annual turnover, a substantial financial repercussion that could significantly impact the industry.

Legal experts suggest that this case could establish a crucial precedent for the advertising sector, compelling agencies and broadcasters to reconsider their pricing strategies and enforce transparent, competitive media-buying practices.

Storyboard18 reached out to the implicated media agencies and IBDF for comments regarding the raids; however, as of now, they have yet to issue any official statements on the matter.

DENTSU