MUMBAI: Who blew the whistle on Indian advertising’s best-kept secret? Turns out, it was the house of Dentsu. Three months after the Competition Commission of India (CCI) swooped down on the country’s top ad agencies over alleged rate-fixing, Japanese media conglomerate Dentsu has confirmed it was the one to pull the plug—filing a suo motu disclosure under CCI’s leniency framework in February 2024. The move, Dentsu claims, wasn’t about crisis control, but about triggering “reform from within.”

In March, CCI teams raided nearly 10 locations, targeting big-league players including GroupM, Publicis, Havas, IPG, and Madison, along with industry associations like AAAI, ISA, and IBDF. The focus? Alleged cartelisation through fixing ad rates, discounts, and possibly stifling competition, an apparent violation of Section 3(3) of the Competition Act, 2002.

While the industry speculated, Dentsu in a statement to Storyboard18 said, “We had a choice to remain passive or drive change... This was a decision to support reform from within.”

Dentsu also claimed to have already implemented stricter audits, tighter controls, and sharper governance. “Change can't be effected by walking away,” it added, calling this a turning point for the entire sector.

CCI’s leniency programme, a powerful tool in its arsenal, incentivises cartel members to come forward in exchange for reduced penalties. Think immunity for honesty, if you snitch first. This has been critical in cracking covert coordination, especially in complex industries like media buying where cartels may not leave an obvious paper trail.

Legal experts say proving cartelisation under Section 3(3) isn’t just about similar pricing, it requires evidence of intent. That can come from emails, meeting notes, or even circumstantial cues like identical bid patterns or synchronised rate shifts via industry associations.

What’s next? If the CCI finds strong evidence, the repercussions could be seismic: hefty penalties, shattered reputations, and a fundamental reordering of media-buying norms. Already, industry stakeholders are watching this case as a litmus test for regulatory muscle in India’s high-stakes ad market.

As one industry veteran put it off the record: “This isn’t just an investigation, it’s a wake-up call.”

In an industry where everyone knows everyone, Dentsu’s move may have ruptured long-standing silences. Whether it ends in punishment or reform, one thing is certain: Indian advertising’s old ways just met a very public reckoning.