Latest news with #CompetitionCommissionofIndia
Time of India
a day ago
- Business
- Time of India
How the world's top ad agencies aligned to fix prices in India
HighlightsOmnicom Media's India Chief, Kartik Sharma, expressed frustration over a rival's attempt to poach their client by offering lower prices, which violated a collective agreement among global advertising agencies on ad rates in India. The Competition Commission of India is investigating a suspected cartel among major advertising firms, including WPP Media, Omnicom Media, and Interpublic Group Mediabrands, for coordinating pricing and denying business to non-compliant agencies. A WhatsApp group named 'AAAI media agencies' included top executives from various advertising companies coordinating their pitches and pricing strategies, which led to concerns about antitrust violations in India's media sector. Omnicom Media 's India chief was frustrated. It was October 5, 2023 and a rival was trying to poach the U.S. firm's client by offering lower prices, just weeks after global advertising agencies and broadcasters struck secret pacts on ad rates in the South Asian country. The attempt to woo the client violated the agencies' agreement, Omnicom Media's India CEO Kartik Sharma wrote in a WhatsApp group comprising a who's who of advertising, according to excerpts of the discussion documented by antitrust investigators and verified by Reuters. "This kind of practice is not in the spirit of what we are collectively trying to achieve," Sharma wrote, without identifying the parties. Shashi Sinha, then India CEO of New York-based IPG Mediabrands, suggested an industry group should "admonish the agency". The exchanges form part of a confidential dossier compiled by India's antitrust watchdog that chronicles how global advertising companies, including leading U.S. and European firms, coordinated to rig prices in the world's most populous nation. Reuters reviewed evidence from the Competition Commission of India (CCI) investigation, including a 10-page document with messages and records of meetings between top advertising executives, and two industry agreements under scrutiny for antitrust violations; and interviewed two people familiar with the probe. The key details, which haven't been previously reported, centre on WhatsApp interactions involving 11 industry executives. They include the top India or South Asia executives of WPP's GroupM; U.S.-based Omnicom Media and Interpublic's IPG Mediabrands; France's Publicis and Havas Media; Japan's Dentsu and India's Madison World. Over WhatsApp and in meetings, the executives coordinated responses to clients, which "resulted in alignment of competing advertising agencies," CCI officials said in the August 9 dossier, determining on an initial basis that the conduct contravened competition law. The firms agreed to cooperate on pricing, including not to undercut each other; colluded with broadcasters to deny business to agencies that didn't comply; and discussed financial terms involving at least four Indian clients over conference calls, according to the investigation documents. The documents don't indicate whether the agencies' foreign headquarters were aware of the executives' actions. A spokesperson for WPP Media , which until May was known as GroupM, told Reuters it was aware of the investigation but declined to comment further. A Dentsu India spokesperson confirmed Reuters reporting that it had disclosed industry practices to the CCI in February 2024 under the regulator's leniency program, which enables lesser penalties for firms that share evidence of malpractice. The spokesperson didn't address specific evidence raised in the dossier but said the firm had implemented stricter audits and controls. The other agencies and their executives didn't respond to Reuters questions about the antitrust probe and information in the dossier. The regulator also didn't respond to queries. Reuters has reported that in March, as part of the continuing investigation, the regulator raided the Indian offices of many advertising firms and an industry group that represents broadcasters, including the Reliance-Disney venture and Sony . CCI investigations typically take several months. The regulator can't press criminal charges, but can impose financial penalties on the media agencies of up to three times their profit or 10% of an Indian entity's global turnover, whichever is higher, for each year of wrongdoing. Secret Pacts WPP Media, the world's largest media buying agency, last year - when it was still known as GroupM - won new India business worth $447 million, followed by Omnicom's $183 million, according to research firm COMvergence. But India's near-$30 billion media and entertainment sector is grappling with weak consumer sentiment. Ad spending will rise 7% to $19 billion in 2025, the slowest growth in three years, according to GroupM estimates. The CCI is investigating the role of two industry bodies, the Advertising Agencies Association of India (AAAI) and the Indian Broadcasting & Digital Foundation (IBDF), in orchestrating the suspected cartel. The former group is led by WPP Media India head Prasanth Kumar, while the broadcasting body's president is Kevin Vaz, a top Reliance-Disney venture executive. Neither industry group responded to requests for comment. The dossier shows the AAAI circulated guidelines to ad agencies in August 2023: They must charge clients whose annual spending exceeds $29 million a minimum 3% commission for digital ads and 2.5% for traditional media. Lower-spending clients would pay higher minimum commissions of up to 8%. A month later, the industry associations entered a joint pact, agreeing no agency would "unilaterally offer any discount" on rates while pitching for business. The pact, reviewed by Reuters, declared its aim was to eliminate "lower pricing as a reason to award a pitch". The advertising firms began coordinating their activities at least as early as August 2023, according to the CCI documents. Ad executives who met on December 1 that year hailed their collaboration as a "great success" and resolved to continue, according to meeting minutes cited in the CCI's evidence. 'All Aligned' In the U.S., the Federal Trade Commission this month sought information from advertising agencies as part of a probe into whether they coordinated boycotts of certain sites. The Justice Department in 2016 probed agencies it suspected of rigging bids to favour in-house units, but eventually closed the case without bringing charges. Brewer Anheuser-Busch InBev used CCI's leniency program to blow the whistle on an industry cartel in India in 2017. In the case of the ad industry, Dentsu India told Reuters it filed its leniency application with the CCI not as a reaction to external pressure but out of a decision to "support reform from within". Two people with knowledge of the matter told Reuters the evidence Dentsu submitted included a transcript of the WhatsApp group. The group, formed in August 2023 and reviewed in part by Reuters, was named "AAAI media agencies" and contained scores of chat messages. Participants included Kumar of WPP's media company, Sharma of Omnicom Media, IPG Mediabrands' Sinha, Havas Media India CEO Mohit Joshi, Dentsu South Asia CEO Harsha Razdan and then-media business CEO Anita Kotwani, Publicis South Asia chief Anupriya Acharya and Madison boss Sam Balsara, the investigators' evidence shows. Members of the group discussed advertising pitches and coordinated on interactions with clients such as food delivery giant Swiggy , drug maker Cipla, SoftBank-backed e-commerce firm Meesho, and Kshema Insurance. In Swiggy's case, the AAAI arranged a Zoom call with media agency heads to discuss the company's advertising pitch. Later, GroupM's Kumar, as AAAI president, suggested an email response to Swiggy explaining the industry's agreed position on rebates. "Ok all aligned thanks," he wrote after a consensus emerged. Kshema told Reuters the insurer was unaware of the matter. The other clients didn't respond to questions. During another discussion on client rebates, an unspecified Dentsu executive told rivals over WhatsApp that "the lowest we go to is retain 30% and 70% we pass back to the client," according to the CCI dossier. CCI officials noted in the document that advertisers and the broadcasters' group had sought to penalise enterprises that didn't comply with the pricing pacts. In an email to Walt Disney in August 2023, Kumar wrote that broadcasters should refrain from granting business to a firm that had breached the pacts, ITW Consulting, though he said it had later agreed not to approach clients directly. ITW didn't respond to Reuters questions. Tensions heated up again over WhatsApp three months later. Sharma, of Omnicom Media, learned that ITW had done another "direct deal with a client of ours" for advertising on streaming platform Hotstar, which was run by Disney. This irked Sharma, as Hotstar had the rights for the cricket World Cup held in India at the time. "This nuisance has to stop," he wrote in the group.
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Business Standard
3 days ago
- Business
- Business Standard
Delhivery share rises 2% on CCI nod to acquire Ecom Express for ₹1,407 cr
Delhivery share price: Logistics company Delhivery share price rose up to 1.64 per cent to hit an intraday high of ₹364.70 per share on Wednesday, June 18, 2025. Around 9:40 AM, Delhivery shares were trading 1.23 per cent higher at ₹363.20 per share. In comparison, BSE Sensex was trading 0.24 per cent higher at 81,776.11 levels. Why did Delhivery share price rise today? Delhivery share price rose after the company announced that Competition Commission of India (CCI) has approved the acquisition of Ecom Express for a purchase consideration not exceeding ₹1,407 crore. In an exchange filing, Delhivery said, 'We would like to inform you that the CCI has vide its letter dated June 17, 2025 has accorded its approval to the said proposed acquisition. The detailed order of the CCI is awaited.' Delhivery Q4 results The company's profit after tax (PAT) came in at ₹73 crore in Q4FY25, from a loss of ₹69 crore in the same quarter last year (Q4FY24), making it the fourth consecutive profitable quarter. 'Profit after tax was ₹162 crore in FY25, an increase of ₹411 crore Y-o-Y from a loss of ₹249 crore in FY24, marking FY25 as the first full year of PAT profitability,' Delhivery said, in a statement. The company's revenue from services rose 6 per cent year-on-year (Y-o-Y) to ₹2,192 crore, from ₹2,076 crore in Q4FY24. Earnings before interest, tax, depreciation and amortisation (Ebitda) saw growth of more than 100 per cent to ₹119 crore (5.4 per cent margin) in Q4FY25 from ₹46 crore (2.2 per cent margin) in Q4FY24. In its express parcel segment, the revenue rose 3 per cent Y-o-Y to ₹1,256 crore in Q4FY25 (₹1,217 crore in Q4FY24) and 5 per cent for the full year to ₹5,318 crore (₹5,077 crore in FY24). The Part Truck Load (PTL) business' revenue jumped 24 per cent Y-o-Y in Q4 to ₹517 crore (₹417 crore in Q4FY24) and 25 per cent Y-o-Y for the year to ₹1,889 crore (₹1,517 crore in FY24). About Delhivery Delhivery is India's largest fully integrated logistics services provider, operating across more than 18,850 pin codes nationwide. The company offers a comprehensive suite of services, including express parcel delivery, part truckload (PTL) and full truckload (TL) freight, cross-border logistics, supply chain solutions, and technology-driven services. Since its inception, Delhivery has fulfilled over 3.6 billion shipments and currently serves more than 44,000 customers, ranging from major e-commerce platforms and enterprises to SMEs and emerging brands.
Mint
3 days ago
- Business
- Mint
Stocks to watch: Hindustan Zinc, GMR Airports, Delhivery, M&M among shares in focus today
Vedanta, the promoter of Hindustan Zinc, is likely to offload shares worth approximately ₹ 7,500 crore through block deals, according to media reports. An electrical goods company announced that it has signed a ₹ 6,447.54 crore contract with Bharat Sanchar Nigam Limited (BSNL) to serve as the project implementation agency (PIA) for the BharatNet initiative across Karnataka, Goa, and Puducherry. UGRO Capital, a DataTech-focused NBFC specializing in MSME lending, announced on Tuesday that it has acquired Profectus Capital in a deal valued at ₹ 1,400 crore. The Competition Commission of India (CCI) has given its approval for Delhivery to acquire a controlling stake in Ecom Express for approximately ₹ 1,407 crore, signifying a significant consolidation move within the Indian logistics industry. The ride-hailing platform has introduced its 0% commission model nationwide, allowing drivers to keep the full amount of their fare earnings. Samayat Services LLP, the company's promoter, offloaded a 19.6% stake for approximately ₹ 10,220 crore. The buyers included SBI Mutual Fund, Kotak Mahindra Mutual Fund, and HDFC Mutual Fund. The company announced that it served over one crore passengers across its airport network in May 2025, reflecting a slight year-on-year increase of 0.8%. Tata Power Renewable Energy has introduced cost-effective rooftop solar solutions in Bhubaneswar, Odisha, with the goal of making clean and sustainable energy more accessible to households across the state. Mahindra & Mahindra (M&M) has secured unconditional approval from the Competition Commission of India (CCI) for its proposed acquisition of SML Isuzu and the associated open offer. RailTel has received a Letter of Intent (LoI) from Zoram Electronics Development Corporation for a project valued at ₹ 43.99 crore. Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
Time of India
3 days ago
- Business
- Time of India
CCI approves Delhivery's acquisition of Ecom Express
The Competition Commission of India (CCI) has approved new-age logistics firm Delhivery 's acquisition of its rival Ecom Express . Delhivery had announced in April that it was buying Ecom Express in a cut-price deal for Rs 1,407 crore. Discover the stories of your interest Blockchain 5 Stories Cyber-safety 7 Stories Fintech 9 Stories E-comm 9 Stories ML 8 Stories Edtech 6 Stories
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Business Standard
5 days ago
- Business
- Business Standard
Digital competition Bill: Online cos tell Parl panel to protect innovation
The Parliamentary Panel is looking into the role of the Competition Commission of India (CCI) in an evolving economy, particularly the digital landscape Ruchika Chitravanshi Shivani Shinde Mumbai Listen to This Article The thresholds for the ex ante (preventative) regulations under the Draft Digital Competition Bill should be increased in a manner that protects the domestic startups and innovation, the Indian online startups and tech product companies have told a parliamentary panel, according to the people in the know. The panel is looking into the role of the Competition Commission of India (CCI) in an evolving economy, particularly the digital landscape. Sources said that the committee has sought the views of the Ministry of Corporate Affairs (MCA) on the suggestions made by some of the Indian online players. The ex ante regulations
