CCI raids reveal ad agency cartel fixing commissions via WhatsApp and virtual meetings
New Delhi: Before launching surprise raids on the offices of global advertising agencies in March, the Competition Commission of India (CCI) had received inputs indicating potential violations of competition law, according to a confidential document reviewed by Reuters.
The watchdog reportedly found evidence that these agencies colluded on the commissions charged to advertisers, breaching Indian competition regulations.
The raids were carried out at the Indian offices of several major global advertising networks, including WPP-owned GroupM, Interpublic, Publicis, and Dentsu.
Offices of two prominent industry bodies—the Indian Broadcasting and Digital Foundation (IBDF) and the Advertising Agencies Association of India (AAAI)—were also searched.
An internal CCI document dated February 7 details allegations that three separate cartels functioned under the umbrellas of the Indian Society of Advertisers (ISA), AAAI, and the IBDF.
Initial findings revealed that advertising agencies had shared commercially sensitive data via WhatsApp groups and adhered to pre-fixed commission structures.
According to the CCI, this anti-competitive conduct dates back to at least 2023.
“AAAI and its members are in contravention” of competition laws, the CCI noted in its assessment that led to the March raids.
The document further revealed that AAAI regularly conducted virtual meetings to align pricing strategies and coordinate responses to client demands.
The group also discussed “retaliatory action” against agencies that did not comply with the agreed terms.
Whistleblower-triggered raids
The operation was reportedly triggered by whistleblower disclosures. Reuters said the CCI acted under its "leniency programme," a legal provision that encourages insiders to expose cartel practices in exchange for reduced penalties.
This investigative approach is commonly used by global competition regulators to penetrate cartel secrecy.
During the 24-hour raid operations in Mumbai and Delhi, the CCI’s forensic teams gathered digital evidence and physical documents.
The probe was initiated under Section 3 of the Competition Act, which empowers the regulator to investigate practices such as price fixing, bid rigging, and market sharing.
The investigation is currently underway.
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