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India ad agencies antitrust scrutiny has shocked the
industry
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Publicis is asking court to help access antitrust case
records
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India watchdog summoned Publicis exec in August, document
shows
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Dentsu ( DNTUF ) blew the whistle in 2024, triggering India case
By Aditya Kalra
NEW DELHI, Aug 14 (Reuters) - Publicis has sued India's
antitrust watchdog for denying access to case files in a
high-profile price-fixing investigation of ad agencies, after
the French group failed to get the probe stalled until it could
review the documents, court filings show.
The Competition Commission of India (CCI) shook India's
near-$30 billion media and entertainment sector in March with
dawn raids at WPP's ( WPP ) GroupM, Dentsu ( DNTUF ), Publicis
, Omnicom ( OMC ) and many other agencies over
suspected collusion over publicity rates and discounts.
Details of cartel cases are kept confidential in India, but
Reuters has reported that the CCI's initial assessment found the
firms used a WhatsApp group to coordinate and agree on pricing,
entered into secret pacts, and colluded with broadcasters to
deny business to agencies that didn't comply.
Concerned the CCI has not responded to its requests in
recent months to provide access to case files, Publicis
approached the Delhi High Court on August 11 asking judges to
order the watchdog to accede to its requests, according to its
non-public filing reviewed by Reuters on Thursday.
Publicis and its employees in India are "unable to
understand the allegations against them and prepare a defence in
the absence of the case records", it said in the filing.
The CCI did not respond to Reuters queries, and the court is
likely to hear Publicis' case next week.
The filing was made by TLG India, which its court papers
said "is the legal entity that houses majority of the
advertising business of the Publicis group in India".
The antitrust investigation was triggered by Dentsu ( DNTUF )
disclosing alleged industry malpractices to the CCI in February
2024 under the regulator's leniency program, which allows lesser
penalties for firms that share evidence of malpractice.
Publicis is the first company to file a lawsuit related to
the high-profile CCI investigation in court.
Filings showed the company urged the CCI in July that
"further investigation remain in abeyance till" it is granted
inspection of case records.
CCI investigations typically take several months. The
regulator has powers to 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.
Publicis' court filing also showed the CCI in July asked for
a brief note from the company about its business model, and how
operations are coordinated with the parent entity.
On August 4, the CCI issued summons to Publicis' South Asia
chief Anupriya Acharya to appear before investigators, and
provide documents such as copies of key contracts involving
Publicis and its Indian entities, including on revenue sharing.
Acharya did not respond to Reuters queries, and Publicis has
asked the court to quash the summon.