CCI Examines the Offices of Various Media Agencies on Claims of Anti-Competitive Pricing Practices

The Competition Commission of India (CCI) has conducted searches at the offices of many big media agencies, including GroupM, Madison, IPG Mediabrands, and Dentsu, in response to claims of anti-competitive pricing practices, according to sources.

The antitrust regulator is investigating if there was any coordination over ad pricing and discounts, according to the sources. According to an individual involved in the investigation, the search activities were performed in response to specific complaints and credible information. According to the official, documents and electronic data were taken during the inspections. "This is going to be studied to see if there is fairness in pricing and deals, thereby offering a level playing field to everyone," the politician stated.

Contracts would also be analyzed to better understand business benchmarks, particularly in media buying and selling, he said. In addition to media firms, CCI officials are alleged to have visited the offices of the Indian Broadcasting and Digital Foundation (IBDF), the Indian Society of Advertisers (ISA), and the Advertising firms Association of India (AAAI). The IBDF is the leading representation body for Indian broadcasters, while the ISA and AAAI represent advertising and media agencies, respectively.

An official from a major media buying agency, speaking on the condition of anonymity, indicated that there was no communication on the basis for the CCI move. Some agency offices have been sealed off, and personnel who were there during the operation are being kept out of the loop, according to an official. The enforcement measures were taken out at media agencies' offices in Delhi-NCR and Mumbai, which specialize in ad campaign design, procurement, and management. These agencies control yearly advertising expenditures ranging from '1-1.5 lakh crore' spanning TV, print, digital, radio, outdoor, and cinema platforms.