Dentsu India admits to being CCI whistleblower in ad cartel investigation

Dentsu India confirms it approached CCI under the leniency programme, triggering cartel investigation into media buying agencies and ad rate collusion

Japanese advertising company Dentsu’s Indian arm has admitted to being the whistleblower in the Competition Commission of India’s (CCI’s) ongoing investigation into alleged collusion between media buying agencies and top broadcasters to fix advertising rates in the country.

 

“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,” a spokesperson for Dentsu India said in an emailed response to Business Standard. “In February 2024, we proactively approached the CCI suo motu under its leniency framework. This was not a reaction to external pressure but a decision to support reform from within.”

 

The spokesperson added: “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 interests of our clients.” 

 

The statement comes months after the CCI conducted raids at media buying agencies, including GroupM, Dentsu, Madison, and industry body the Indian Broadcasting and Digital Foundation (IBDF), following allegations of cartel-like behaviour between agencies and broadcasters to manipulate ad pricing.

 

According to media reports, the March raids were carried out at nearly 10 locations and also included other major agencies such as Havas, as well as associations like the Advertising Agencies Association of India (AAAI) and the Indian Society of Advertisers (ISA).

 

The Dentsu spokesperson also noted that change cannot be driven by withdrawing from the situation. 

 

“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,” the company said.

 

Sources familiar with the development said the competition watchdog had used whistleblower input to gather evidence on alleged cartelisation among media buying agencies ahead of the Indian Premier League (IPL) season. The CCI has not officially confirmed the reason for the raids.

 

The method of information gathering referred to by Dentsu — the “leniency programme” — allows whistleblowers within a cartel to disclose information about the operation in exchange for reduced penalties in mitigating circumstances. Regulators often use such frameworks in cartel cases due to the difficulty of obtaining evidence in secretive arrangements.