Ad majors under scanner again as collusion charge goes global

The global advertising industry is facing a fresh wave of scrutiny, as allegations of collusion—once seen as sporadic and market-specific—begin to echo across geographies. 

A crackdown is unfolding in the US— led by the Federal Trade Commission. 

The regulator has accused major global agency networks, including WPP, Publicis Groupe and Dentsu, of coordinating advertising boycotts against certain media platforms under the umbrella of “brand safety.” The scrutiny intensified around instances where ad spending was allegedly steered away from platforms such as X and publishers like Fox News, both of which have faced advertiser pullbacks over concerns around content adjacency and perceived bias.

Starting in 2018, major US ad majors who buy digital ad inventory on behalf of advertisers—through their trade associations—specifically, the World Federation of Advertisers’ Global Alliance for Responsible Media (“GARM”) and the American Association of Advertising Agencies’ Advertiser Protection Bureau (“APB”)— established their common brand-safety standards, alleges FTC.

While “brand safety” remains a priority for advertisers, regulators argue that collectively enforcing these standards risks crossing into anti-competitive behaviour—restricting market access and replacing independent buying decisions with coordinated action.

“The ad agencies’ brand-safety conspiracy turned competition in the market for ad-buying services on its head,” FTC Chairman Andrew N. Ferguson said in a statement. “The antitrust laws guarantee participation in a market free from conduct, such as economic boycotts, that distort the fundamental competitive pressures that promote lower prices, higher quality products and increased innovation.

“As we explain in our complaint, the brand-safety agreement limited competition in the market for ad-buying services and deprived advertisers of the benefits of differentiated brand-safety standards that could be tailored to their unique advertising inventory,” he continued. 

“This unlawful collusion not only damaged our marketplace, but also distorted the marketplace of ideas by discriminating against speech and ideas that fell below the unlawfully agreed-upon floor. The proposed order remedies the dangers inherent to collusive practices and restores competition to the digital news ecosystem,” Ferguson stated. 

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FTC Order

The Federal Trade Commission, in its April 15 order, directed WPP, Publicis Groupe and Dentsu to cease the alleged coordinated conduct and put safeguards in place to prevent any recurrence—terms the agencies have agreed to comply with. The regulator added that Omnicom Group and Interpublic Group are subject to a similar order.

 Agencies’ Response

When reached out for comments, a WPP spokesperson, said, “WPP Media confirms that it has reached agreement on a mutually acceptable consent order with the FTC on a no admit nor deny basis. We are pleased to finalize this agreement with the FTC which reflects our existing and ongoing commitment to provide our clients with unbiased advice as they decide where to place their media.”

Omnicom told e4m the latest FTC announcement does not include them as the agency struck a similar agreement with FTC back on September 26, 2025. 

Publicis and dentsu did not respond till the time of publishing this story. 

Implications on ad ecosystem 

The advertising market was approximately a $1 trillion market globally in 2025, where Digital spends (approximately $690 billion) are outpacing traditional at 15%–20% growth per annum over the past decade, according to Bain & Company. 

In India, the ad market has crossed Rs 1.55 lakh crore in 2025 with digital advertising commanding nearly two third of the spends. Regionally, while North America makes up the majority of advertising spend and shows steady growth, the Asia-Pacific region is poised to grow faster on the backs of emerging countries like India, which are expanding rapidly, fueled by broader consumption growth, demographic tailwinds, and favorable digital trends.

“With rising ad dollars, agencies in the US and India are likely to face tighter oversight and a push towards greater disclosure. For an industry built on persuasion and perception, the optics of fairness and independence may soon matter as much as performance itself,” says a senior ad leader. 

As markets mature and regulatory scrutiny intensifies, the answer will likely shape not just agency operations, but the broader dynamics of how advertising dollars are allocated—across platforms, publishers and geographies, experts note. 

“For advertisers, this evolving landscape introduces a layer of complexity that goes beyond compliance. The reliance on agencies for strategic guidance means brands may inadvertently become part of industry-wide practices that regulators later deem problematic,” said a CMO, requesting anonymity. 

“In India, where media fragmentation coexists with a handful of dominant buying agencies, even informal coordination can have a cascading impact on pricing benchmarks across television, digital and out-of-home,” remarked an industry insider. 

In India, the conversation has largely centred on informal coordination around ‘agency commission’ which is currently being probed by the Competition Commission of India.