Ad Giants Under Scrutiny: Antitrust Raids Shake India's Advertising Landscape

The Indian antitrust body has raided multiple global advertising agencies over alleged price collusion. The investigation targets GroupM, Dentsu, and Interpublic, among others. These raids are part of ongoing scrutiny as the ad market shifts after major mergers. Investigators are focusing on ad price fixing with broadcasters.

In a significant move, the Indian antitrust authority has executed surprise raids on various global advertising agencies, including GroupM, Dentsu, and Interpublic Group, to investigate suspected price collusion activities. Sources revealed that these raids follow a competition case against these and other agencies, accusing them of fixing advertisement rates and discounts.

The operations were executed across Mumbai, New Delhi, and Gurugram, marking a pivotal moment in India's evolving ad landscape, especially after the $8.5 billion merger of Walt Disney and Reliance's media units. This merger, analysts say, is poised to dominate 40% of the TV and streaming ad market.

India, emerging as a premier growth hub in the global ad market, is witnessing substantial transformations, especially with digital making up a significant portion of ad spending. Authorities, with confidentiality, continue their deep dive into this complex investigation, indicating potentially hefty penalties for those found guilty of collusion.

(With inputs from agencies.)