Indian authorities have raided the offices of several leading global advertising firms, including GroupM and Dentsu, as part of an ongoing investigation into alleged price collusion within the country’s $14 billion advertising sector.

Global media buyers targeted: The Competition Commission of India (CCI) carried out searches across multiple cities, targeting offices of GroupM (a unit of WPP) and Japan’s Dentsu, two of the world’s largest media buying agencies. Officials also visited the Indian Broadcasting and Digital Foundation (IBDF), a key industry body, in connection with the probe.

Claims of a cartel: According to sources cited by Reuters, the investigation centers on suspected coordination between media buying firms to fix rates for television and digital ad placements, potentially violating Indian competition laws. The CCI suspects that these firms may have formed a cartel to rig the bidding process for ad space, thereby inflating costs for clients and distorting market competition.

Regulatory muscle flexed: It is one of the most significant antitrust investigations in India’s advertising industry to date and reflects a broader push by the Modi government to tighten oversight of foreign and domestic companies operating in critical sectors. The raids come at a time of increasing scrutiny of the media and advertising ecosystem in India, where global firms are competing for dominance in a rapidly expanding digital landscape.

Steep fines possible: Analysts note that the outcome of the investigation could reshape pricing practices and transparency standards in one of the world's fastest-growing advertising markets. CCI officials have not disclosed the full scope of the probe or whether any charges will be filed, but companies found guilty of forming a cartel under Indian law can face heavy fines and reputational damage.