The disclosure by Dentsu marks a major shift in the industry’s hush-hush culture. The company claimed that its decision was not due to external pressure but a deliberate move to support reform.
In March, the CCI raided nearly ten locations across India, targeting heavyweights like GroupM, Madison, Havas, Publicis, IPG, and major industry bodies like the Indian Broadcasting and Digital Foundation (IBDF), the Advertising Agencies Association of India (AAAI), and the Indian Society of Advertisers (ISA). The investigation focuses on whether media agencies and broadcasters fixed advertising rates in violation of Section 3(3) of the Competition Act, 2002.
Sources reveal that two senior Dentsu executives were part of a private WhatsApp group that included top leaders from rival agencies. These executives allegedly continued to participate in group discussions while quietly relaying information to the CCI. The group, once a space for informal exchanges among competitors, was abruptly disbanded after the raids. The AAAI later warned members to avoid any communication that could be interpreted as anti-competitive.
Dentsu claims it has already implemented internal reforms such as stricter audits, tighter controls, and stronger governance mechanisms. Yet the reaction from the industry has been tense. While no formal blacklisting has occurred, some insiders hinted at possible informal consequences.
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