India’s competition regulator has launched surprise raids on the offices of several global advertising powerhouses, including GroupM, Publicis, Dentsu, and Interpublic Group, as well as a key broadcast industry association, over allegations of price-fixing, sources with direct knowledge told Reuters on Tuesday.
Acting on a case against major advertising firms and leading broadcasters, officers from the Competition Commission of India (CCI) conducted searches at approximately 10 locations, according to one of the sources. These enforcement actions were carried out in Mumbai, New Delhi, and Gurugram, with five additional sources confirming the names of the targeted entities.
The crackdown comes at a time when India's advertising industry is undergoing significant transformation, driven by the $8.5 billion merger between Walt Disney and Reliance’s media assets, which is expected to command 40% of TV and streaming ad revenue, according to Jefferies analysts. The raids also follow Omnicom Group’s recent $13.25 billion acquisition of its rival Interpublic Group, forming the world’s largest advertising firm. Omnicom has not commented on the development.
Major advertising firms, including GroupM (owned by Britain’s WPP), IPG Mediabrands (a unit of Interpublic), Publicis Groupe (France), and Japan’s Dentsu, have yet to issue official statements. Likewise, the Indian Broadcasting and Digital Foundation (IBDF) and the CCI have refrained from commenting, as the regulator does not disclose details of its price collusion investigations.
According to the first source, the CCI is probing how advertising agencies allegedly collaborated with certain broadcasters to manipulate advertising rates and discounts. The IBDF, which represents top domestic broadcasters—including the newly formed Reliance-Disney joint venture, Sony, and Zee Entertainment—also declined to respond to Reuters' inquiries.
The CCI suspects that certain broadcasters engaged in "collective action" to withhold discounts on ad rates, the first source revealed. This scrutiny comes as India—the world’s eighth-largest advertising market—is experiencing rapid growth. According to GroupM, ad revenue in India stood at $18.5 billion in 2024 and is projected to grow 9.4% in 2025.
Digital advertising now accounts for 60% of total ad spending, driven by platforms such as JioHotstar, Netflix, Amazon Prime, and YouTube.
During these unannounced raids, CCI officers typically seize crucial documents and record statements from company executives. Such investigations can extend over several days and remain confidential throughout the process. Another source familiar with the matter disclosed that the antitrust case against media agencies was initiated discreetly last year, though an exact date was not specified.
This is not the first instance of aggressive enforcement by India's competition regulator. In December, the CCI raided alcohol giants Pernod Ricard and Anheuser-Busch InBev over allegations of price collusion with retailers in a southern Indian state.
If the advertising firms are found guilty, they could face severe financial penalties, amounting to either three times their annual profit during the period of collusion or 10% of their yearly turnover per year of wrongdoing—whichever is higher.