The Competition Commission of India (CCI) reportedly raided the offices of global advertising groups GroupM, Dentsu and IPG following allegations of price collusion.
Reuters quoted a source as saying the commission initiated a case against the agencies and top broadcasters over allegedly fixing ad rates and discounts.
“The first source said the CCI was investigating how ad agencies allegedly colluded with certain broadcasters to fix ad prices while selling them to clients, and discussed discounts,” Reuters said in an exclusive report.
“CCI officers typically seize documents and record testimonies of company officials. The investigation is likely to then continue for several months, and the process is kept confidential.”
The Financial Express in India said the development came as a surprise to industry watchers, who describe the raids as “unprecedented”.
Have something to say on this? Share your views in the comments section below. Or if you have a news story or tip-off, drop us a line at adnews@yaffa.com.au
Sign up to the AdNews newsletter, like us on Facebook or follow us on Twitter for breaking stories and campaigns throughout the day.