Credit: Devin Kaselnak via Unsplash
A group of executives from the global advertising groups, allegedly discussing pitches, agreeing on commissions for media buying of television advertising spots and promising not to undercut each other, were caught up in a sting operation by one of their own.
The Competition Commission of India (CCI) in March raided the offices of global advertising groups including GroupM, Publicis, Dentsu, Havas and IPG plus industry bodies representing broadcasters and advertising companies.
The commission has initiated a case against the agencies and broadcasters over allegedly fixing ad rates and discounts, plus commissions charged.
Now a new report has emerged that the local India operations of advertising group dentsu cooperated with the Competition Commission of India in exchange for leniency.
The case revolves around 11 agency executives allegedly exchanging information via a WhatsApp group. The regulator has copies of messages and records of meetings, according to Reuters.
The local office of the Japan-based group dentsu has confirmed its role, describing the situation as a “challenging moment” for an industry.
“Dentsu India is among the country’s leading agency networks and with that comes the responsibility to act with integrity and accountability,” said a Dentsu India spokesperson.
“We had a choice – to remain passive or drive change.”
“In February 2024, we proactively approached the Competition Commission of India (CCI) suo moto (on its own) under its Leniency framework. This was not a reaction to external pressure but a decision to support reform from within.
“We proactively implemented meaningful changes including enhanced audits, stricter governance and tighter internal controls. These reflect our ongoing commitment to build trust through transparency, action and accountability to safeguard the interest of our clients.
“Change can't be affected by walking away – this may be a challenging moment for an industry we are proud to be a part of, but it also presents an opportunity for collective reform. At Dentsu India we are committed to this change for our clients and the future of a thriving industry.”
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