CCI Investigates Industry Bodies For Possible Cartelisation In Advertising

2025-03-26 08:05:06

(MENAFN- KNN India) New Delhi, Mar 26 (KNN) The Competition Commission of India (CCI) is probing three key industry bodies-the Indian Society of Advertisers (ISA), the Advertising Agencies Association of India (AAAI), and the Indian Broadcasting & Digital Foundation (IBDF)-for potential cartelisation in the advertising sector.

This investigation follows complaints suggesting that their guidelines and advisories may have restricted competition and violated antitrust laws.

The probe was initiated in August 2024, leading to a search operation on March 18 and 19, during which the CCI seized relevant documents.

The regulator is examining whether the industry associations implemented restrictive agreements or engaged in coordinated enforcement actions that impacted competition.

A primary focus of the inquiry is the ISA's Model Agency Agreement, introduced on August 3, 2023, which allegedly limited direct negotiations between advertisers and agencies.

Additionally, the AAAI issued Guidelines on Media Agency Remuneration on August 30, 2023, setting minimum commissions and incentives for advertising services.

The IBDF followed suit on September 11, 2023, with an advisory imposing restrictions on agency discounts for TV ad rates and mandating indemnification clauses.

The CCI has also received allegations that the AAAI and IBDF formed a joint sub-committee that meets monthly to take collective action against certain advertisers and enforce IBDF's procedures, raising further competition concerns.

While the identities of the complainants remain undisclosed, industry insiders speculate that whistle-blowers from media agencies initiated the complaints.

They point to major advertising accounts being consolidated within a few dominant agencies, potentially distorting competition and impacting pricing structures in the industry.

The CCI's investigation is ongoing, and its findings could have significant implications for the advertising ecosystem in India.

(KNN Bureau)

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