The Competition Commission of India (CCI) recently launched a significant investigation into alleged price-fixing and discount collusion by top broadcasters and advertising agencies. Officers from the CCI conducted raids at approximately 10 locations, including the offices of several global advertising giants, such as GroupM and Dentsu.
The raids also targeted the Indian Broadcasting and Digital Foundation (IBDF), a key industry group representing broadcasters.
The investigation into alleged price-fixing in the advertising sector in India has taken a dramatic turn, with several agency heads and CEOs refusing to respond to inquiries. Despite repeated attempts, none of the CEOs or senior executives of the agencies involved have been picking up their phones, with some even having their lines switched off. In certain agencies, officials are still present and being questioned, casting uncertainty over the extent of the ongoing investigation.
Sources close to the situation suggest that a team of police officers, accompanied by Competition Commission of India (CCI) officials, arrived at several locations to question the leadership of key advertising agencies. These agencies, including global giants such as WPP, Omnicom, Havas, as well as industry bodies like the Indian Society of Advertisers (ISA), and the Indian Broadcasting and Digital Foundation (IBDF), have been raided as part of the CCI’s probe into suspected price-fixing practices.
The central issue appears to be price-fixing, with sources suggesting that either a large advertiser or a smaller advertising agency may have filed a complaint that triggered the investigation. Those monitoring the situation believe that the Competition Commission’s raid is related to collusion over ad rates and discount practices. The fact that many involved agencies are remaining tight-lipped and are under active scrutiny adds to the mystery surrounding the case.