India's Antitrust Raids Shake Global Ad Industry

The Competition Commission of India (CCI) conducted raids on global advertising firms like GroupM, Dentsu, and Interpublic Group, as well as a broadcast industry group, over allegations of price collusion. This move follows major mergers within India's ad sector, signaling potential shifts in the market dynamics.

India's antitrust authority has targeted the offices of major global advertising agencies, including GroupM, Dentsu, and Interpublic Group, in a crackdown on alleged price collusion. Sources revealed that the Competition Commission of India (CCI) searched around ten locations as part of an ongoing investigation into price-fixing practices.

The raids, conducted in cities like Mumbai, New Delhi, and Gurugram, come amid significant changes in India's advertising landscape. Notably, the $8.5 billion merger between Walt Disney and Reliance's media assets potentially alters market dynamics, with the new entity poised to capture 40% of ad spending in the TV and streaming sectors.

With the Indian Broadcasting and Digital Foundation and ad giants remaining silent on the matter, the investigation is set to continue for several months. If found guilty, involved agencies may face severe financial penalties, impacting India's growing ad market, which is projected to expand by 9.4% by 2025.

(With inputs from agencies.)