CCI Raids Global Ad Agencies and Broadcasters Over Alleged Price Fixing

India's Competition Commission of India (CCI) has conducted raids on major global advertising agencies and a broadcasters' industry group amid allegations of price fixing, reports Reuters.

The raids, targeting companies including GroupM, Publicis, Dentsu, Interpublic Group, and the Indian Broadcasting and Digital Foundation (IBDF), occurred in Mumbai, New Delhi, and Gurugram. Approximately 10 locations were searched.
The CCI is investigating claims that these agencies colluded with broadcasters to manipulate advertising rates and discounts. Investigators are seizing documents and recording testimonies.

This action comes as India's advertising market experiences significant shifts, notably following the $8.5 billion merger between Walt Disney and Reliance's India media assets, which is expected to control 40% of the TV and streaming ad market. Additionally, Omnicom Group's recent $13.25 billion acquisition of Interpublic Group has reshaped the global advertising landscape.

The investigation focuses on alleged "collective action" by broadcasters to avoid discounting ad rates. India's advertising market, valued at $18.5 billion in 2024, is projected to grow significantly, with digital advertising comprising 60% of spending.

If found guilty, the companies could face penalties of up to three times their profits or 10% of their turnover for each year of collusion, whichever is higher.

The IBDF represents major Indian broadcasters, including the Reliance-Disney joint venture, Sony, and Zee Entertainment. Spokespersons for the involved companies and organizations have not yet responded to requests for comment.