India's antitrust body conducted surprise raids on the offices of global advertising giants, including GroupM, Dentsu and Interpublic Group, and a broadcasters' industry group.

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The raids were carried out to investigate alleged price collusion, news agency Reuters reported, on Tuesday (Mar 18), citing sources.

The Competition Commission of India (CCI), searched nearly 10 locations and initiated the case after receiving complaints that these agencies and broadcasters were allegedly fixing ad rates and discounts.

According to the Reuters reports, the raids were carried out in Mumbai, New Delhi, and Gurugram.

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The raids coincided with significant changes in India's advertising landscape, particularly following the massive $8.5 billion merger between Walt Disney and Reliance's India media assets. According to analysts at Jefferies, this merger is expected to result in a substantial 40% share of the ad market in both TV and streaming segments, potentially altering the competitive dynamics in the industry.

Spokespersons for ad giant GroupM, which is owned by Britain's WPP (WPP.L), US-based Interpublic's IPG Mediabrands unit, and Japan's Dentsu did not respond to Reuters' requests for comment.

The Indian Broadcasting and Digital Foundation declined Reuters' request for comment, nor did the Competition Commission of India (CCI), which doesn't publicly disclose details of its enforcement actions or cases related to price collusion.

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The CCI was reportedly probing allegations that advertising agencies colluded with certain broadcasters to fix ad prices and discuss discounts.

During these surprise raids, the CCI officers typically confiscate relevant documents and gather testimonies from company officials. The investigation will likely unfold over several months, with the entire process being kept strictly confidential.

In December 2024, the CCI raided offices of alcohol giants including Pernod Ricard, and Anheuser-Busch InBev, as part of an investigation into the reports of alleged price collusion with retailers in a southern state.

The Indian Broadcasting Foundation serves as a representative body for prominent domestic broadcasters, including notable entities such as the Reliance-Disney joint venture, as well as Sony and Zee Entertainment.

(With inputs from agencies)