India’s Competition Commission (CCI) launched a sweeping antitrust raid on major media buying agencies this week, acting on evidence submitted under its leniency programme, with Japan’s Dentsu reportedly among the first to cooperate, sources told Reuters.
Price-Fixing Allegations Rock Media Sector
The two-day operation targeted the Indian offices of GroupM (WPP-owned), Interpublic, Publicis, and Dentsu, as well as the Indian Broadcasting & Digital Foundation (IBDF)—a powerful body representing leading broadcasters such as Reliance-Disney, Sony, and Zee.
At the heart of the investigation are allegations of collusion over ad pricing and discounting, potentially coordinated between the Advertising Agencies Association of India (AAAI) and IBDF. According to sources, media firms were pressured to follow predetermined guidelines to win advertising clients, raising red flags under competition law.
How the Leniency Program Works
The CCI’s leniency programme allows companies to avoid or reduce penalties by coming forward voluntarily with evidence of cartelisation or anti-competitive conduct. The first whistleblower may receive 100% penalty waiver, while subsequent ones can also gain partial relief.
Dentsu is believed to have filed its disclosure in February 2024, setting the stage for this week’s raids. Other firms’ involvement in the CCI leniency scheme remains unclear.
High Stakes in a Fast-Growing Market
India’s advertising market—the eighth largest in the world—earned $18.5 billion in 2024, and is projected to grow 9.4% in 2025, according to GroupM. This investigation lands at a critical time, following the $8.5 billion merger between Disney and Reliance’s Indian media assets, a deal that could capture up to 40% of India’s TV and streaming ad market.
If found guilty of collusion, the implicated firms may face penalties up to three times their profit or 10% of annual turnover, whichever is higher, for each year the misconduct occurred.
Also read: CCI Chief: AI Could Enable Market Collusion
Precedents and Industry Impact
This isn’t the first time CCI’s leniency mechanism has shaken up a sector. In 2018, AB InBev’s tip-off about a beer cartel led to multi-agency raids and eventual full immunity for the whistleblower.
With a case of this magnitude unfolding in the ad world, agencies and clients alike will be watching closely. The outcome could reshape pricing norms, transparency standards, and regulatory scrutiny across India’s rapidly evolving media and marketing ecosystem.
