CCI raids offices of Publicis Groupe, expands probe over ad price collusion: Report

CCI officers searched around 10 locations after the anti-trust body initiated a case against the agencies and top broadcasters over allegedly fixing ad rates

The Competition Commission of India (CCI) on Tuesday raided the offices of advertising giant Publicis, expanding its investigation into alleged cartelization in the media and advertising industry, Storyboard18 has reported.

The raid follows earlier searches at top advertising firms like GroupM, Dentsu and Interpublic Group across Mumbai, New Delhi and Gurugram.

Earlier, sources told Reuters that the antitrust watchdog raided the offices of the global advertising giants over alleged price collusion.

Sources told Storyboard18 that the crackdown may expand further to include other agencies.

"Offices of Publicis were also raided in the similar matter. The CCI is trying to crackdown on cartelization of fixing ad prices and discounts," a source told Storyboard18.

The investigation falls under Section 3(3) of the Competition Act, 2002, which prohibits agreements between industry players that directly or indirectly determine prices or restrict competition.

Officials are now focusing on gathering evidence such as emails, pricing agreements, internal meeting records and coordinated rate cards that may indicate anti-competitive behavior.

Besides raiding media agencies, CCI officials also visited the office of Indian Broadcasting and Digital Foundation (IBDF) as part of the probe.

The action follows a case initiated by the CCI against leading media agencies and top broadcasters over alleged collusion in setting advertising rates and discounts.

Sources close to the development alleged that legal assistance was denied during the raids.

As of now, media agencies and IBDF have not issued any official statements regarding the raids.