Dentsu India admits to being CCI whistleblower in ad cartel investigation

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 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).
'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.

Try Our AI Features

Explore what Daily8 AI can do for you:

Learn with AIFact CheckingText to SpeechAI Summary

Related Articles

Time of India

32 minutes ago

• Time of India

'Involved in development of ballistic missiles': FATF calls out Pakistan for flouting norms; India may use dossier to push for sanctions

A new report from the Financial Action Task Force (FATF) has cited a case involving Pakistan's missile development programme, referencing a shipment seized by Indian customs officials in 2020 that was bound for Port Qasim in Karachi. Tired of too many ads? go ad free now The FATF case study outlines how dual-use goods, including equipment critical for ballistic missile technology, were mis-declared in export documents and linked directly to Pakistan's National Development Complex, which is known to be involved in the development of long-range ballistic missiles. The FATF report reveals that Indian investigators intercepted a cargo ship falsely declaring autoclaves, equipment used for high-energy materials and missile motor components. 'The Bill of Lading of the seized cargo provided evidence of the link between the importer and the National Development Complex,' the report noted. This latest disclosure comes as FATF increases its scrutiny of state-sponsored terrorism, particularly following the April 22 terror attack in Pahalgam, Kashmir, which left 26 dead. In a public condemnation, FATF said: 'This, and other recent attacks, could not occur without money and the means to move funds between terrorist supporters.' As per PTI sources, India is likely to use this FATF disclosure in its dossier to push for Pakistan's return to the FATF grey list. The upcoming Asia Pacific Group meeting in August and the FATF plenary in October may see renewed calls for sanctions or monitoring. According to officials cited by PTI, the inclusion of 'state-sponsored terrorism' in the FATF's upcoming analysis marks a significant step in acknowledging Pakistan's involvement in funding and facilitating terror operations. Tired of too many ads? go ad free now The incident flagged by FATF, which occurred in February 2020 at Kandla port, saw authorities act on intelligence regarding a suspicious Hong Kong-flagged ship, Da Cui Yun, that had departed from China's Jiangyin port, TOI had reported. Officials seized a massive pressure chamber described as a pipe-like object, 35-40 feet in length, now confirmed to have potential ballistic missile applications. Experts from the Defence Research and Development Organisation (DRDO) joined a high-level investigation into the cargo, amid tight-lipped responses from customs due to the national security implications. Also read: The FATF report also highlighted the growing global risk from proliferation financing (PF), especially concerning state and non-state actors acquiring dual-use technologies for weapons of mass destruction (WMD). 'The proliferation of weapons of mass destruction and related financing represents a significant threat to global security and the integrity of the international financial system,' the report warns, adding that failure to implement effective controls could allow actors to exploit weaknesses in global export and financial systems.

United News of India

33 minutes ago

• United News of India

High-level Japan-US meeting cancelled over defence spending demands: Reports

Tokyo, June 21 (UNI) Tokyo cancelled "two-plus-two" security talks with the United States after Washington asked Japan to boost defence spending to 3.5 percent of the GDP, the Financial Times newspaper reported citing unnamed sources familiar with the matter. US Secretary of State Marco Rubio and US Defence Secretary Pete Hegseth had planned to meet with their Japanese counterparts, Defence Minister Gen Nakatani and Foreign Minister Takeshi Iwaya, on July 1 in Washington. The Financial Times said on Friday that Tokyo scrapped the meeting after a demand was made in recent weeks by US Defence Department's official Elbridge Colby for Japan to increase defence spending to 3.5 percent of its GDP, instead of the 3 percent asked for earlier. The newspaper specified, citing a senior Japanese official, that the decision to cancel the planned meeting was also related to the election to the upper house of Japan's parliament. The ruling Liberal Democratic Party is expected to lose seats in the upper house election, set for July 20. Earlier in June, NATO Secretary General Mark Rutte called on NATO member states to increase their defence spending from the current 2 percent to 3.5 percent of their respective GDPs, and spend another 1.5 percent on infrastructure development, defence industry and other security-related investments. US President Donald Trump previously demanded that NATO allies spend 5 percent of GDP on defence. Japan is not a member of NATO, but is one of NATO's partners in the Indo-Pacific region. The Hague will host the NATO summit from June 24-25. Media reports have suggested that the allies will focus primarily on NATO defence spending during the summit. UNI SPUTNIK ARN

Time of India

37 minutes ago

• Time of India

Sebi gears up for use of AI, machine learning on Dalal Street

Represenatative image Mumbai : Markets regulator Sebi has proposed a five-point plan for adoption and use of artificial intelligence-machine learning (AI/ML)based technologies in the Indian securities market. Those are model governance, investor protection disclosure, testing framework, fairness & bias, and data privacy & cyber security measures. The regulator has come out with a consultation paper titled 'Guidelines for responsible usage of AI/ML in the Indian securities market' that has detailed the proposals. The paper was published after a working group of experts from the field gave their recommendation on the use of AI/ML. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now