In a sweeping enforcement action, the Competition Commission of India (CCI) has raided the offices of some of the world’s largest advertising agencies—GroupM, Dentsu, and Interpublic Group (IPG)—along with other key players like Publicis and Madison, as well as industry bodies, over allegations of price collusion and anti-competitive practices. The raids, which began on Tuesday, March 18, and extended into the early hours of Wednesday, have sent shockwaves through India’s $18.5 billion advertising industry, particularly as they coincide with preparations for the Indian Premier League (IPL), the country’s most lucrative advertising season.
(Media Queries sent to dentsu, and GroupM remained unanswered till the time of publishing this story.)
What happened?
The CCI launched its operation early Tuesday morning, targeting around 10 locations across Delhi-NCR, Mumbai, and Gurugram. Officers grilled media executives, seized documents, emails, internal records, and electronic devices, and reviewed pricing agreements and coordinated rate cards. Sources report that the raids lasted over 16 hours in some cases, concluding around 4 a.m. Wednesday at offices like GroupM’s Mumbai headquarters and the New Delhi office of the Indian Broadcasting and Digital Foundation (IBDF), a key broadcasters’ group representing entities like the Reliance-Disney joint venture and Sony.
The investigation focuses on whether these global advertising giants, alongside top broadcasters, colluded to fix advertising rates and manipulate discounts, potentially overcharging advertisers and stifling competition. The CCI is also probing industry associations like the IBDF, the Advertising Agencies Association of India (AAAI), and the Indian Society of Advertisers (ISA) for evidence of coordinated efforts that may have created an unfair market environment.
Why now?
The timing of the raids—just before the IPL season, which kicks off later this month—has heightened industry tensions. The IPL is a cornerstone of India’s advertising calendar, drawing massive investments from brands vying for visibility during the cricket tournament. GroupM, owned by Britain’s WPP and boasting a 45% media market share in India, along with Dentsu (Japan) and IPG (U.S.), are dominant players in this high-stakes market, which saw revenues of $18.5 billion in 2024 and is projected to grow by 9.4% in 2025.
Sources suggest the probe may have originated from a routine Goods and Services Tax (GST) investigation at a major agency last year, which uncovered signs of cartelisation. This led the CCI to escalate its scrutiny, culminating in what industry insiders call the “strictest enforcement action ever” against media agencies in India.
The allegations
At the heart of the investigation is the charge of price-fixing—where companies allegedly agree to set advertising rates at predetermined levels rather than letting market competition dictate prices. The CCI is examining whether GroupM, Dentsu, IPG, and others worked with broadcasters to establish opaque rebate structures and coordinated discounts, potentially harming smaller agencies and advertisers. Such practices could violate Section 3(3) of the Competition Act, 2002, which prohibits agreements that manipulate pricing or limit competition.
Legal experts note that the inclusion of industry bodies like the IBDF suggests a broader cartelization case. “When the CCI targets associations alongside companies, it often indicates evidence of collective action that disadvantages smaller players,” said a senior competition lawyer, speaking anonymously.
Industry impact
The raids have left the advertising sector reeling. CEOs and senior executives were reportedly unreachable during the operations, with mobile phones seized and access to legal assistance blocked at some locations, according to industry reports. Broadcasters, reliant on IPL ad revenues, worry that delays in ad placements could tarnish the tournament’s stature, while agencies fear a “massive trust deficit” with clients.
India’s advertising market, the world’s eighth-largest, is increasingly digital, with 60% of ad spending flowing to platforms like JioHotstar, Netflix, Amazon Prime, and YouTube. Recent mergers, such as the $8.5 billion Reliance-Disney deal, have raised concerns about market concentration, and the CCI’s actions could complicate pending transactions, including Omnicom’s $13.25 billion acquisition of IPG, announced in December 2024.
What’s at stake?
If found guilty, the agencies could face penalties of up to 10% of their annual turnover—a significant financial hit for giants like GroupM, which serves 45 of India’s top 50 advertisers. Beyond fines, the investigation could force a restructuring of media buying practices, potentially leveling the playing field for smaller firms but disrupting established business models.
The response
Neither the CCI nor the raided companies—GroupM, Dentsu, IPG, Publicis, nor Madison—have issued official statements. The IBDF, AAAI, and ISA also remain silent. This lack of clarity has fueled speculation, with some industry sources dismissing the raids as based on “unsubstantiated tip-offs,” while others see them as a bold step toward transparency in a rapidly evolving market.
Looking ahead
As the CCI analyses the seized data, the advertising industry remains in limbo. The probe’s outcome could set new precedents for how media buying is conducted in India, especially as regulators worldwide scrutinise consolidation in the ad sector. For now, stakeholders are bracing for fallout that could reshape trust, competition, and pricing in one of the world’s fastest-growing markets.