Antitrust Storm: Raids Shake India's Advertising Giants

India's antitrust body raided advertising giants like GroupM, Publicis, and others for alleged price collusion. This comes amid industry shifts post Disney and Reliance's merger. The ongoing investigation, involving seized documents and recorded testimonies, may lead to significant penalties if violations are confirmed.

The Indian antitrust authority has launched raids on several leading global advertising organizations, including GroupM, Publicis, Dentsu, and the Interpublic Group, amid accusations of price collusion. These actions, confirmed by multiple sources, were executed in Mumbai, New Delhi, and Gurugram and targeted both advertising agencies and major broadcasters.

The industry's landscape is in flux following the $8.5 billion merger between Walt Disney and Reliance's media assets, poised to capture a substantial portion of the ad market. Alongside, Omnicom's recent acquisition of Interpublic Group bolsters its position as the largest ad agency worldwide.

Allegations suggest ad agencies collaborated with broadcasters to fix prices, impacting discount offerings. If confirmed guilty, agencies face penalties amounting to thrice their profits or 10% of their turnover per violation year. The case continues with data seizure and testimonies, maintaining confidentiality.

(With inputs from agencies.)