Author: Akanksha Nagar

CCI raids on major ad firms spark hopes of level playing field for Indie agencies

Home-grown media agencies feel the Competition Commission of India's probe will promote greater transparency and data sharing. (Image source: Unsplash)

Homegrown advertising agencies are expecting greater transparency in ad rates and costs after the Competition Commission of India’s investigation into GroupM, Publicis, Madison, dentsu, and IPG.

India AdEx set for short-term hit if CCI probe and seizures continue at top ad firms

CCI probe focused on unearthing emails, pricing agreements, internal meeting records, and coordinated rate cards that suggested anti-competitive behavior. (Source: Unsplash)

The Competition Commission of India’s (CCI) probe into advertising firms will lead to a short-term contraction as brands and agencies reevaluate procurement practices and financial governance. The biggest impact may be seen in traditional media, where high-value transactions and bulk media buys are more susceptible to scrutiny, say experts.

Public consultation on ‘AI Governance Guidelines Development’ completed, over 100 suggestions received: MeitY

The Ministry of Electronics and Information Technology (MeitY) published a report on 'AI Governance Guidelines Development' for public consultation on January 6, 2025.

On March 19, Minister of State for Electronics & IT, Commerce and Industry, Jitin Prasada, addressed the Lok Sabha regarding “liabilities arising from AI usage” and reiterated the establishment of advisory group to develop an India-specific regulatory framework for AI.

CCI raids at top firms could leave media agencies grappling with massive trust deficit, feel experts

The cracks in Dentsu’s relationship with the industry started showing when a top agency snatched two major accounts—an automobile giant worth ₹1000 crore and an FMCG behemoth worth ₹1600 crore.

Media and advertising industry fears that the Competition Commission of India’s (CCI) investigation into top ad firms (GroupM, Madison, IPG, Publicis, and Dentsu) may cause massive disruption in the way the media buying ecosystem functions and may even impact India’s advertising expenditure in short term.

CCI raids at dentsu, GroupM, IPG, Madison, Publicis fuel unrest; stakeholders demand fair probe

The advertising industry thrives on collaboration, partnerships, and innovation—and such (CCI investigating IPG, Publicis, GroupM, and dentsu) scrutiny, while necessary, has also led to uncertainty, said experts. (Image source: Unsplash)

Industry observers, questioning the possibility of regulatory overreach by Competition Commission of India, emphasised the need for a fair regulatory process that avoids stifling genuine competitive practices through broad-brush enforcement.

GroupM, IPG, Publicis, Dentsu, Madison may face penalties up to 10% of annual turnover if found guilty in CCI investigation

Eyewitnesses described scenes of controlled chaos: employees were ordered to power down their cell phones while officials combed through offices, seizing critical documents, electronic devices, and vital evidences.

The agencies allegedly colluded with broadcasters to fix advertising rates, thereby limiting the ability of advertisers to negotiate competitive pricing. If proven, this would mean that large advertisers, who depend on these agencies for media planning and buying, were systematically overcharged through a coordinated manipulation of discounts, commissions, or bidding processes.

Unearthing emails, pricing agreements, internal meeting records: CCI crack down on potential cartelisation, price-fixing in media industry

The HC decision follows the hearing of three petitions against the non-regulation of deepfake technology in the country and the threat of its potential misuse.

If GroupM, IPG, dentsu and IBDF are found guilty, the penalties could be severe fines up to 10% of their average annual turnover under Section 27, possible debarment from working with certain broadcasters, and mandatory corrective measures like greater transparency in pricing.

Box office collection in Jan-Feb’ 2025 stood at Rs 2,264 crore; 39% higher than 2024

'Chhaava' has emerged as the top-grossing film of the month, grossing over Rs 650 crore, thereby becoming one of the highest-grossing Hindi films of all time, said Ormax Media report.

While ‘Chhaava’ emerged as the top film in February, contributing more than half of the month’s total box office; re-releases of ‘Sanam Teri Kasam’ and ‘Interstellar’ secured sports among the top 10 highest-grossing films of the month.