India’s Competition Commission (CCI) is investigating several top global advertising agencies and broadcasters for allegedly colluding to fix ad rates and manipulate market conditions. Confidential CCI documents suggest a coordinated effort among major U.S., European, Japanese, and Indian firms to maintain pricing control in the country’s $30 billion media and entertainment sector.
The inquiry, supported by WhatsApp chats and internal communications, points to a covert agreement where agencies aligned pricing strategies and discouraged undercutting. One case in October 2023 revealed frustration within an industry WhatsApp group when a firm lowered its rates, breaching the alleged pact. Executives reportedly called for reprimanding the agency that broke ranks.
The CCI’s preliminary findings show these agencies cooperated on pricing strategies and allegedly colluded with broadcasters to block non-compliant competitors. Conversations also involved setting financial terms for Indian clients on coordinated calls.
One global firm has admitted to anti-competitive practices under the CCI’s leniency program and pledged internal reforms. The probe has expanded to include key industry groups—AAAI and IBDF—which reportedly distributed minimum pricing guidelines and entered agreements to discourage low-cost bidding.
The CCI’s investigation follows recent raids and could result in significant penalties for any firms found guilty of violating antitrust laws.
See What’s Next in Tech With the Fast Forward Newsletter
Tweets From @varindiamag
Nothing to see here - yet
When they Tweet, their Tweets will show up here.
