Latest news with #AAAI
Yahoo
6 days ago
- Business
- Yahoo
Indian watchdog found global ad agencies colluded on fees, document shows
By Aditya Kalra NEW DELHI (Reuters) -India's antitrust body found that global ad agencies breached laws by coordinating on commissions they charge advertisers, prompting the watchdog's raids on advertising and media companies in March, according to a document which sheds new light on the investigation into the media sector. The Competition Commission of India conducted surprise raids in March at the local offices of ad agencies WPP-owned GroupM, Interpublic, Publicis and Dentsu and at the offices of an Indian broadcasters' body and an association of advertising companies. A CCI document dated February 7 and seen by Reuters on Friday sheds new light on allegations that three separate cartels operated through three different industry groups: the Indian Society of Advertisers (ISA), Advertising Agencies Association of India (AAAI) and Indian Broadcasting and Digital Foundation (IBDF). Before the raids, the CCI document said, it reviewed evidence that showed the alleged misconduct was prevalent since at least 2023, and advertising agencies exchanged commercially sensitive information on WhatsApp groups and agreed to adhere to pre-decided commission structures. "AAAI and its members are in contravention" of competition laws, the CCI noted in its initial review, while ordering the investigation which triggered the March raids, the document said. AAAI also often organised virtual meetings among members to align on prices and responses to be shared with clients, and discussed "retaliatory action" against members who don't follow such guidelines, the document said. The group "also fixed the formula for fee in case of fee-based service to advertisers," CCI said. The groups - AAAI which represents GroupM, Dentsu and Publicis, ISA which counts dozens of Indian and foreign companies as members, and the IBDF group of broadcasters - did not respond to Reuters queries. The CCI also did not respond to a request for comment. The CCI does not publicly disclose any details of price fixing investigations. Reuters reported in March that the allegations relate to collusion between media buying agencies and broadcasters, and the case was triggered after Dentsu made disclosures under a whistleblower-type federal programme. The raids cast a shadow on India's fast-growing media and broadcast sector which counts Reliance-Disney and Sony as top players, and could alter how ads are priced and sold in the country. Detailing the allegations, the CCI document said the advertisers "established a buyer's cartel", while the broadcasters who provide channels separately engaged in "collective action to refrain from giving discounts" to clients. Another cartel "exists in the media segment of advertising agencies and attempts are underway" to establish a cartel in its creative business segment, the CCI added. The three industry groups also "coordinate their activities and indulge in collective negotiations ... on issues which should ideally be negotiated independently," it added. "The respective industry association appear to evolve guidelines, advisories or negotiation parameters ... to secure the commercial interests of their members," it added. In recent weeks, AAAI privately asked its members to avoid discussions over pricing during meetings, where the group's legal adviser must be present, Reuters has reported. The investigation comes amid major shifts in India's advertising landscape following last year's $8.5 billion merger between Walt Disney and Reliance's Indian media assets, which is estimated to have a 40% share of the ad market in TV and streaming segments. India is the world's eighth-biggest ad market, where revenues stood at $18.5 billion last year, GroupM estimates. The CCI investigation is likely to continue for several months before final findings are issued.
Time of India
7 days ago
- Business
- Time of India
CCI found global ad agencies colluded on fees, document shows
HighlightsThe Competition Commission of India discovered that global advertising agencies engaged in price-fixing by coordinating commission structures charged to advertisers. Surprise raids were conducted by the Competition Commission of India at the offices of major advertising agencies, including GroupM, Interpublic, Publicis, and Dentsu, as part of an investigation into alleged cartel behavior. The investigation is expected to have significant implications for India's advertising market, which is valued at $18.5 billion, following recent industry changes such as the merger between Walt Disney and Reliance's media assets. India's antitrust body found that global ad agencies breached laws by coordinating on commissions they charge advertisers, prompting the watchdog's raids on advertising and media companies in March, according to a document which sheds new light on the investigation into the media sector. The Competition Commission of India conducted surprise raids in March at the local offices of ad agencies WPP-owned GroupM , Interpublic, Publicis and Dentsu and at the offices of an Indian broadcasters' body and an association of advertising companies. A CCI document dated February 7 and seen by Reuters on Friday sheds new light on allegations that three separate cartels operated through three different industry groups: the Indian Society of Advertisers (ISA), Advertising Agencies Association of India (AAAI) and Indian Broadcasting and Digital Foundation (IBDF). Before the raids, the CCI document said, it reviewed evidence that showed the alleged misconduct was prevalent since at least 2023, and advertising agencies exchanged commercially sensitive information on WhatsApp groups and agreed to adhere to pre-decided commission structures. "AAAI and its members are in contravention" of competition laws, the CCI noted in its initial review, while ordering the investigation which triggered the March raids, the document said. AAAI also often organised virtual meetings among members to align on prices and responses to be shared with clients, and discussed "retaliatory action" against members who don't follow such guidelines, the document said. The group "also fixed the formula for fee in case of fee-based service to advertisers," CCI said. The groups - AAAI which represents GroupM, Dentsu and Publicis, ISA which counts dozens of Indian and foreign companies as members, and the IBDF group of broadcasters - did not respond to Reuters queries. The CCI also did not respond to a request for comment. The CCI does not publicly disclose any details of price fixing investigations. Reuters reported in March that the allegations relate to collusion between media buying agencies and broadcasters, and the case was triggered after Dentsu made disclosures under a whistleblower-type federal programme. The raids cast a shadow on India's fast-growing media and broadcast sector which counts Reliance-Disney and Sony as top players, and could alter how ads are priced and sold in the country. Detailing the allegations, the CCI document said the advertisers "established a buyer's cartel", while the broadcasters who provide channels separately engaged in "collective action to refrain from giving discounts" to clients. Another cartel "exists in the media segment of advertising agencies and attempts are underway" to establish a cartel in its creative business segment, the CCI added. The three industry groups also "coordinate their activities and indulge in collective negotiations ... on issues which should ideally be negotiated independently," it added. "The respective industry association appear to evolve guidelines, advisories or negotiation parameters ... to secure the commercial interests of their members," it added. In recent weeks, AAAI privately asked its members to avoid discussions over pricing during meetings, where the group's legal adviser must be present, Reuters has reported. The investigation comes amid major shifts in India's advertising landscape following last year's $8.5 billion merger between Walt Disney and Reliance's Indian media assets, which is estimated to have a 40% share of the ad market in TV and streaming segments. India is the world's eighth-biggest ad market, where revenues stood at $18.5 billion last year, GroupM estimates. The CCI investigation is likely to continue for several months before final findings are issued.
Hindustan Times
24-05-2025
- Business
- Hindustan Times
India's antitrust body finds price fixing among global ad agencies in probe
India's antitrust body found that global ad agencies breached laws by coordinating on commissions they charge advertisers, prompting the watchdog's raids on advertising and media companies in March, according to a document which sheds new light on the investigation into the media sector. The Competition Commission of India conducted surprise raids in March at the local offices of ad agencies WPP-owned GroupM, Interpublic, Publicis and Dentsu and at the offices of an Indian broadcasters' body and an association of advertising companies. Also Read: Supreme Court imposes ₹7,000 cost on lawyer who sought probe into protocol lapse A CCI document dated February 7 and seen by Reuters on Friday sheds new light on allegations that three separate cartels operated through three different industry groups: the Indian Society of Advertisers (ISA), Advertising Agencies Association of India (AAAI) and Indian Broadcasting and Digital Foundation (IBDF). Before the raids, the CCI document said, it reviewed evidence that showed the alleged misconduct was prevalent since at least 2023, and advertising agencies exchanged commercially sensitive information on WhatsApp groups and agreed to adhere to pre-decided commission structures. Also Read: 'ED crossing all limits': SC stays TN probe "AAAI and its members are in contravention" of competition laws, the CCI noted in its initial review, while ordering the investigation which triggered the March raids, the document said. AAAI also often organised virtual meetings among members to align on prices and responses to be shared with clients, and discussed "retaliatory action" against members who don't follow such guidelines, the document said. Also Read: 'Appalled by manner of probe': HC pulls up Shimla SP-led SIT The group "also fixed the formula for fee in case of fee-based service to advertisers," CCI said. The groups - AAAI which represents GroupM, Dentsu and Publicis, ISA which counts dozens of Indian and foreign companies as members, and the IBDF group of broadcasters - did not respond to Reuters queries. The CCI also did not respond to a request for comment. The CCI does not publicly disclose any details of price fixing investigations. Reuters reported in March that the allegations relate to collusion between media buying agencies and broadcasters, and the case was triggered after Dentsu made disclosures under a whistleblower-type federal programme. The raids cast a shadow on India's fast-growing media and broadcast sector which counts Reliance-Disney and Sony as top players, and could alter how ads are priced and sold in the country. Detailing the allegations, the CCI document said the advertisers "established a buyer's cartel", while the broadcasters who provide channels separately engaged in "collective action to refrain from giving discounts" to clients. Another cartel "exists in the media segment of advertising agencies and attempts are underway" to establish a cartel in its creative business segment, the CCI added. The three industry groups also "coordinate their activities and indulge in collective negotiations ... on issues which should ideally be negotiated independently," it added. "The respective industry association appear to evolve guidelines, advisories or negotiation parameters ... to secure the commercial interests of their members," it added. In recent weeks, AAAI privately asked its members to avoid discussions over pricing during meetings, where the group's legal adviser must be present, Reuters has reported. The investigation comes amid major shifts in India's advertising landscape following last year's $8.5 billion merger between Walt Disney and Reliance's Indian media assets, which is estimated to have a 40% share of the ad market in TV and streaming segments. India is the world's eighth-biggest ad market, where revenues stood at $18.5 billion last year, GroupM estimates. The CCI investigation is likely to continue for several months before final findings are issued.
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Business Standard
23-05-2025
- Business
- Business Standard
CCI found global ad agencies colluded on fees, internal document shows
Ahead of its surprise raids at the offices of global advertising agencies in March, the Competition Commission of India (CCI) had received inputs suggesting that the firms were violating competition norms, according to a confidential document reviewed by Reuters. The CCI found evidence that the agencies colluded on the commissions charged to advertisers, in violation of Indian competition law. The raids targeted the local offices of several major ad networks, including WPP-owned GroupM, Interpublic, Publicis, and Dentsu, as well as the offices of two key industry bodies—the Indian Broadcasting and Digital Foundation (IBDF) and the Advertising Agencies Association of India (AAAI). The internal CCI document, dated February 7, sheds new light on allegations that three separate cartels operated through different industry groups: the Indian Society of Advertisers (ISA), AAAI, and the IBDF. According to the CCI's initial findings, advertising agencies were found to have exchanged commercially sensitive information via WhatsApp groups and agreed to abide by pre-decided commission structures. The regulator noted that such conduct had been ongoing since at least 2023. 'AAAI and its members are in contravention' of competition laws, the CCI said in its review, which led to the March raids. The document also revealed that AAAI regularly held virtual meetings to coordinate pricing strategies and responses to clients, and discussed 'retaliatory action' against agencies that deviated from the agreed terms. Whistleblower-triggered raids Notably, the raids were preceded by whistleblower disclosures, according to Reuters. The CCI reportedly relied on its "leniency programme"—a provision under Indian competition law that incentivises insiders to reveal cartel operations in exchange for reduced penalties. This method of information gathering is frequently used by global regulators to break through the secrecy of cartel behaviour. The CCI's forensic teams collected digital data and physical documents during the 24-hour raid operations conducted across Mumbai and Delhi. Under Section 3 of the Competition Act, the CCI is empowered to investigate anti-competitive agreements, including those involving price fixing, bid rigging, and market allocation.
Time of India
23-05-2025
- Business
- Time of India
CCI found global ad agencies colluded on fees, document shows
India's Competition Commission investigated ad agencies. Raids occurred at GroupM, Interpublic, Publicis, and Dentsu offices. The probe revealed potential commission coordination since 2023. Agencies allegedly exchanged sensitive information and fixed prices. Industry groups like AAAI are under scrutiny. The investigation impacts India's growing media sector. It may change ad pricing practices. The inquiry follows a major media merger in India. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads India's antitrust body found that global ad agencies breached laws by coordinating on commissions they charge advertisers, prompting the watchdog's raids on advertising and media companies in March, according to a document which sheds new light on the investigation into the media Competition Commission of India conducted surprise raids in March at the local offices of ad agencies WPP-owned GroupM , Interpublic, Publicis and Dentsu and at the offices of an Indian broadcasters' body and an association of advertising companies.A CCI document dated February 7 and seen by Reuters on Friday sheds new light on allegations that three separate cartels operated through three different industry groups: the Indian Society of Advertisers (ISA), Advertising Agencies Association of India (AAAI) and Indian Broadcasting and Digital Foundation (IBDF).Before the raids, the CCI document said, it reviewed evidence that showed the alleged misconduct was prevalent since at least 2023, and advertising agencies exchanged commercially sensitive information on WhatsApp groups and agreed to adhere to pre-decided commission structures."AAAI and its members are in contravention" of competition laws, the CCI noted in its initial review, while ordering the investigation which triggered the March raids, the document also often organised virtual meetings among members to align on prices and responses to be shared with clients, and discussed "retaliatory action" against members who don't follow such guidelines, the document group "also fixed the formula for fee in case of fee-based service to advertisers," CCI groups - AAAI which represents GroupM, Dentsu and Publicis, ISA which counts dozens of Indian and foreign companies as members, and the IBDF group of broadcasters - did not respond to Reuters CCI also did not respond to a request for CCI does not publicly disclose any details of price fixing investigations. Reuters reported in March that the allegations relate to collusion between media buying agencies and broadcasters, and the case was triggered after Dentsu made disclosures under a whistleblower-type federal raids cast a shadow on India's fast-growing media and broadcast sector which counts Reliance-Disney and Sony as top players, and could alter how ads are priced and sold in the the allegations, the CCI document said the advertisers "established a buyer's cartel", while the broadcasters who provide channels separately engaged in "collective action to refrain from giving discounts" to cartel "exists in the media segment of advertising agencies and attempts are underway" to establish a cartel in its creative business segment, the CCI three industry groups also "coordinate their activities and indulge in collective negotiations ... on issues which should ideally be negotiated independently," it added."The respective industry association appear to evolve guidelines, advisories or negotiation parameters ... to secure the commercial interests of their members," it recent weeks, AAAI privately asked its members to avoid discussions over pricing during meetings, where the group's legal adviser must be present, Reuters has investigation comes amid major shifts in India's advertising landscape following last year's $8.5 billion merger between Walt Disney and Reliance's Indian media assets, which is estimated to have a 40% share of the ad market in TV and streaming is the world's eighth-biggest ad market, where revenues stood at $18.5 billion last year, GroupM CCI investigation is likely to continue for several months before final findings are issued.
