Indian CCI raid GroupM, Publicis, IPG and Dentsu offices over alleged price-fixing

The Competition Commission of India (CCI) conducted surprise raids on the offices of several global advertising giants, including GroupM, Publicis, Dentsu, and Interpublic Group (IPG), along with the Indian Broadcasting and Digital Foundation (IBDF) and the Indian Society of Advertisers (ISA). Sources with direct knowledge of the matter informed Reuters on Tuesday that the raids are linked to an investigation into suspected price-fixing practices.

A team of CCI officers and law enforcement personnel searched approximately 10 locations across Mumbai, New Delhi, and Gurugram. The investigation reportedly focuses on alleged collusion in fixing advertising rates and discounts, with sources indicating that either a large advertiser or a smaller agency may have triggered the probe by filing a complaint.

The authorities are reportedly scrutinising whether advertising agencies colluded with broadcasters to maintain artificially high ad prices and control discount structures. IBDF, representing major broadcasters such as the Reliance-Disney joint venture, Sony, and Zee Entertainment, is also under investigation over alleged collective actions to prevent ad rate reductions.

The CCI has not publicly disclosed the details of its enforcement action. However, during the raids, officials have reportedly questioned the leadership teams of WPP, Omnicom, Publicis, IBDF, and ISA.

Surprise raids often extend over multiple days, with CCI officers seizing documents and recording testimonies. If the agencies under investigation are found guilty of price collusion, they could face severe penalties—up to 10% of their annual turnover or three times their profits for each year of the collusion, whichever is higher.

The Indian advertising industry is undergoing significant shifts. The country is currently the world’s eighth-largest advertising market, with an estimated revenue of $12.13 billion (INR 1,01,084 crore) in 2023. The latest ‘Dentsu Digital Advertising Report 2025’ notes that the Indian advertising industry grew by 6.3% in 2024, reaching $13.85 billion (INR 1,15,460 crore). Projections suggest a CAGR of 6.87%, bringing the market size to $13.85 billion (INR 1,15,460 crore) by 2026. The digital advertising segment, which expanded by 21.1% in 2024 to $5.91 billion (INR 49,251 crore), is expected to reach $8.38 billion (INR 69,856 crore) by 2026, making up 61% of total ad expenditures.

GroupM forecasts a 9.4% growth in 2025, with digital advertising now accounting for 60% of total ad spending. Streaming platforms such as JioHotstar, Netflix, Amazon Prime, and YouTube continue to dominate, attracting significant advertising investments.

The recent $8.5 billion merger between Walt Disney and Reliance’s media assets is poised to create a giant entity that could dominate India’s TV and streaming ad arena. However, the recent raids have raised eyebrows, wondering how it could impact ad rates in the growing market.

Further complicating the landscape is Omnicom Group’s $13.25 billion acquisition of IPG, announced in December, which would make it the world's largest advertising agency. Industry insiders speculate that the CCI’s scrutiny could have implications for this deal, particularly as the US Federal Trade Commission has already issued a second request for further information amid concerns about competition and vendor deals.

The timing of these raids is particularly significant, given the upcoming Indian Premier League (IPL) season, a crucial period for advertising revenue. An industry expert noted, “With the Disney-Reliance merger poised to control 40% of India’s TV and streaming ad market, and Omnicom’s acquisition of Interpublic Group, consolidation is reshaping the industry. Any price-fixing among major agencies and broadcasters could heavily distort competition.”

Another industry observer highlighted the importance of addressing potential monopolistic practices. “If allegations of collusion are true, it means these agencies may have been operating as a cartel to control ad rates. If that is the case, the CCI’s intervention is crucial to maintaining fair market practices,” he added.

The CCI’s recent actions reflect a broader regulatory tightening in India’s corporate sector. In December 2023, the commission raided the offices of alcohol conglomerate Pernod Ricard and Anheuser-Busch InBev over allegations of price collusion with retailers in a southern state.

Additionally, three months ago, Dentsu Communications India came under scrutiny in a separate $16.44 million ( INR 137 crore) money laundering investigation by the Enforcement Directorate (ED). The Times of India reported that ED raids across Mumbai, Delhi, and Gurugram uncovered $600,000 (INR 50 lakh) in Indian and foreign currency, $408,000 (INR 3.4 crore) in gold bars, and critical property-related documents and digital records.

Depending on their level of involvement, the regulatory scrutiny of media buying practices could significantly impact broadcasters such as the Reliance-Disney JV, Sony, and Zee. The potential disruption to advertising rate structures may also create opportunities for smaller agencies to compete more effectively in the market.

“Digital spending already dominates 60% of total ad spend for most brands and agencies, with platforms like JioHotstar, Netflix, YouTube, and Amazon Prime driving ad revenues. Given this rapid shift, the advertising sector is ripe for increased regulatory scrutiny,” explained an industry insider.

With India’s advertising landscape continuing to evolve, the CCI’s investigation into alleged price collusion could set new precedents for how media buying is conducted in the country. While it remains to be seen what penalties will be levied, this case is poised to have lasting implications on India’s advertising market and its regulatory framework.