The Competition Commission of India (CCI) has conducted sweeping raids on the offices of major global advertising agencies, including GroupM, Dentsu, Publicis, and Interpublic Group, along with the Indian Broadcasting and Digital Foundation (IBDF), over allegations of price collusion.
The enforcement action, carried out across multiple locations in Mumbai, New Delhi, and Gurugram, underscores the regulator’s intensified scrutiny of anti-competitive practices in India’s rapidly growing advertising market, Reuters reported.
Allegations of Price Fixing
According to sources familiar with the matter, the CCI is investigating claims that leading advertising agencies colluded with broadcasters to manipulate advertising rates and restrict discounts offered to clients. The first source revealed that the CCI suspects these firms engaged in “collective action” to maintain higher ad prices, limiting competition and potentially harming advertisers and consumers.
This latest enforcement move follows other high-profile regulatory actions, including the CCI’s December 2024 raids on global alcohol giants Pernod Ricard and Anheuser-Busch InBev, which were investigated for alleged price collusion with retailers.
Raids and Investigation Process
The CCI officers searched approximately 10 locations as part of their probe into alleged anti-competitive behavior. In such surprise raids, investigators typically seize documents, examine financial records, and record testimonies from company executives. The investigation, which began confidentially last year before the raids, is expected to continue for months, with the findings remaining confidential until the commission completes its review.
Impact on the Indian Advertising Market
The Indian advertising industry, valued at $18.5 billion in 2024, is projected to grow by 9.4% in 2025, according to estimates by GroupM. Digital advertising now constitutes nearly 60% of total ad spending, with streaming platforms such as JioHotstar, Netflix, Amazon Prime, and YouTube playing a significant role in shaping the landscape.
The timing of the CCI’s action coincides with major shifts in the Indian media sector, particularly following the $8.5 billion merger between Walt Disney’s India assets and Reliance, which analysts predict will control approximately 40% of the TV and streaming ad market. Additionally, Omnicom Group’s $13.25 billion acquisition of Interpublic Group in December 2024 has further reshaped the global advertising industry.
Potential Consequences
If the allegations against these agencies and broadcasters are proven, the companies could face substantial financial penalties. Under Indian competition law, firms found guilty of price collusion can be fined up to three times their profit for each year during which the collusion took place, or 10% of their turnover for each year of wrongdoing, whichever is higher.
Despite the gravity of the accusations, neither the CCI nor the implicated companies—GroupM (owned by WPP), IPG Mediabrands (a unit of Interpublic Group), Publicis Groupe, Dentsu, nor the IBDF—have issued official statements on the matter.
