In March 2025, the Competition Commission of India (CCI) conducted raids across nearly 10 locations—including major media agencies such as GroupM, Publicis, IPG, Madison, and Havas, as well as broadcasters’ bodies like the Advertising Agencies Association of India (AAAI) and the Indian Broadcasting and Digital Foundation (IBDF). These actions were part of an ongoing probe into alleged cartelization in media-buying and ad commission pricing. The investigation, which began in early 2023, uncovered signs of possible collusion, including the use of encrypted messaging apps and informal networks to coordinate practices like pitch avoidance and rebate standardization.
Dentsu’s Role & Leniency Application
In February 2024, Dentsu India filed a voluntary application under the CCI’s leniency programme, officially becoming the whistle-blower in the case. This marked the first public admission from any agency cooperating in the investigation. Dentsu submitted critical evidence—including WhatsApp transcripts, internal communications, and documentation—suggesting widespread coordination on commission rates, client pitches, and media buying terms. The agency emphasized that it took this step independently, not in response to pressure or legal compulsion, reflecting its intent to uphold compliance and accountability.
Dentsu’s Statement & Reforms
A spokesperson for Dentsu India stated: “Dentsu India is among the country’s leading agency networks, and with that comes the responsibility to act with integrity and accountability. We had a choice—to remain passive or drive change.” Since its disclosure, Dentsu has strengthened its internal governance structure by instituting compliance training, audit frameworks, and stricter control over third-party and inter-agency dealings. The company sees its whistle-blowing role as a catalyst for industry-wide reform and cleaner practices in media buying and selling.
Legal & Industry Implications
The CCI’s findings reportedly include evidence that key industry bodies coordinated to fix ad commission structures and restrict competitive bidding. This could amount to a violation of Section 3 of the Competition Act, which prohibits anti-competitive agreements and practices. While the CCI does not have the authority to pursue criminal penalties, it can impose financial penalties up to 10% of a company’s turnover or three times its profit—whichever is higher. Industry associations have begun issuing warnings to members, advising them against engaging in pricing discussions or using unofficial communication channels such as WhatsApp to coordinate rates.
What’s Next?
The CCI is expected to issue its final order in the coming months, and it could result in heavy fines or sanctions for agencies found guilty of collusion. The development may also trigger a shift in how media planning and buying are conducted in India, with more emphasis on compliance, transparency, and third-party audits. For advertisers, this could usher in an era of fairer competition and greater clarity on service fees. For agencies, the spotlight on ethical business practices is likely to grow stronger, prompting long-term operational changes.
Dentsu India’s decision to become a whistle-blower in the CCI’s ad-cartel investigation has brought significant transparency to an industry long accused of opaque practices. By taking proactive steps and cooperating with regulators, Dentsu not only contributed to exposing the cartel but also positioned itself as a change leader in the Indian advertising ecosystem. This landmark case may well define the standards for ethical conduct in media and advertising for years to come.
