Month: March 2025

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.

EXCLUSIVE: After raids at GroupM, Dentsu and IPG, CCI raids offices of Publicis Groupe

Despite global economic uncertainties, Publicis reaffirms its full-year guidance, projecting an organic growth of 4% to 5% and aiming for a slight improvement over the 18% margin achieved in 2024.

The action comes after CCI initiated a case against the agencies and top broadcasters over allegedly fixing ad rates and discounts.

CCI raids: Other top agencies also under scanner for alleged cartelisation

The Competition Commission of India (CCI) has investigated 35 cartel cases in the last five years, minister of finance and corporate affairs Nirmala Sitharaman told the Lok Sabha on Monday.

Under Section 3(3) of the Competition Act, 2002, any agreement between players in the same industry that directly or indirectly determines prices or restricts competition is illegal.

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.

CCI seizes documents, electronic evidences from media agencies

Leniency programs reduce fines or offer immunity to the first cartel member who cooperates with authorities, thereby destabilizing the cartel's secrecy.

CCI officials raided offices of GroupM, Dentsu and Interpublic Group in Mumbai, New Delhi and Gurugram. The CCI officials also visited the Indian Broadcasting and Digital Foundation office for investigation.

CCI raids GroupM, Dentsu and Interpublic Group offices

Leniency programs reduce fines or offer immunity to the first cartel member who cooperates with authorities, thereby destabilizing the cartel's secrecy.

Sources told Storyboard18 that GroupM’s Mumbai office near Mumbai airport Bay 99 has been blockaded by the CCI officials. The investigations are ongoing.