The Indian Antimonopoly Body raided higher global advertising agencies and broadcasters for allegedly consolidating prices in tariffs and discounts.
India launches investigations with raids on Global Advertising Giants Groupm, Dentsu and Association Association
The Commission for Competition of India (CCI), the country’s antitrust administration, conducted raids on the offices of several major global advertising campaigns and an industry body for broadcasters. According to sources talking to the Reuters news agency on Tuesday, these actions were initiated after allegations of fixing the advertising market. Among the raid companies are one of the world’s largest advertising agencies, including Groupm (owned by British Company WPP), Dentsu (from Japan) and Interpublic Group (IPG). Indian broadcasting and digital fund representing large broadcasters of India was also included in the investigation.
Sources note that IPP staff searched about 10 places in major cities such as Mumbai, New Deli and Gururam. The raids are part of a broader case that started against these agencies and leading broadcasters for allegedly securing advertising rates and deciding discounts together, rather than allowing the market to decide prices honestly.
In these unexpected raids, CCI officials usually introduce the company’s premises without notice. They seize important documents, digital data and record statements of high -ranking officials to collect evidence. The investigation process is confidential and can take several months.
The terms of this acceleration are important. Currently, India’s advertising industry testifies to great changes. A $ 8.5 billion between Indian media -based Walt Disney and Reliance’s media has recently been merged. According to financial experts in Jefferies, this merger will control about 40% of the advertising market on both television and platforms.
Asked about the comments to the raids, none of the Groupm companies, Dentsu, IPG Mediabrands or Indian broadcasting and the digital fund were answered. CCI is also not publicly not shared by details about current investigations or actions that have been initiated in the case of prices.
The focus in the IPS is to explore how these advertising agencies could work with some broadcasters to unjustly control the advertising prices and discuss unauthorized discounts.
This is not the first time CCI has taken such strong measures. Last December, he conducted a search at the offices of the leading alcoholic companies Pernod Ricard and Anheuser-Busch InBev as part of the price retail price investigation.
The Indian Broadcasting and Digital Fund includes leading leading in the country, including a company that is part of the recently created joint venture Reliance Disney, as well as major networks such as Sony and Zee Entertainment.
The current raids show that CCI is closely monitoring the large branches and takes measures to ensure that the India’s growing advertising and media market does not have an unfair game and manipulation.
