#e4mBreaking:  CCI agrees to add TLG India to media cartel investigation; Delhi HC disposes petition

The Delhi High Court on Friday disposed of TLG India Pvt. Ltd.'s writ petition after the Competition Commission of India (CCI) informed the court that it had no objection to adding TLG India as an entity under investigation in the ongoing antitrust probe into alleged cartelisation in India's advertising industry.

Justice Swarana Kanta Sharma disposed of the petition after recording the statement made by the CCI, bringing a temporary closure to a legal dispute that has centered on whether the regulator could continue investigating the global brand name "Publicis Groupe" instead of its Indian legal entity, TLG India.

The order marks a significant development in one of the most closely watched legal challenges arising out of the CCI's suo motu investigation into alleged anti-competitive practices by advertising agencies.

CCI changes its stand

During the hearing, senior counsel Jayant Mehta, appearing for the CCI, informed the court that the regulator had taken instructions and had "no difficulty" in adding TLG India as an entity under investigation. "We have no difficulty adding the petitioner as a party under investigation in the ongoing investigation," Mehta submitted before the court, clarifying that the Commission's concession was confined to the issue raised in the writ petition.

Senior advocate Amit Sibal, appearing for TLG India, urged the court to record the Commission's statement and dispose of the petition while keeping all rights and contentions of both parties open.

Accepting the submissions, Justice Sharma directed that the petition be disposed of in terms of the statement made before the court, while preserving the rights of all parties. The court also observed that if any further grievance arises, the petitioner would remain free to approach the court again.

During the hearing, TLG India emphasized that the order should clearly record that the company would now be added to the investigation, noting that the CCI had earlier maintained that it was not a party to the proceedings. The court agreed that the Commission's statement would be recorded accordingly.

A dispute over identity

The latest order effectively concludes, for now, a dispute that has persisted for months over the identity of the entity under investigation.

The controversy began after the CCI, through its August 9, 2024 order initiating a suo motu investigation into alleged cartelisation in the advertising industry, named "Publicis Groupe" as one of the opposite parties.

TLG India, which operates Publicis Groupe's advertising business in India, argued that "Publicis Groupe" is merely a global brand and not a juridical entity capable of being investigated under the Competition Act. According to the company, although the investigation named the brand, the Director General continued issuing summons to TLG India and its employees without formally recognizing the company as an opposite party.

Earlier this year, the Delhi High Court had declined to interfere with the investigation, asking TLG India to first approach the CCI with its grievance regarding the identity of the entity under investigation.

Following those observations, TLG India filed a rectification and substitution application before the Commission seeking replacement of "Publicis Groupe" with "TLG India Private Limited." However, the Commission rejected that request, prompting the company to once again approach the Delhi High Court.

Proceedings before the court

During Friday's hearing, TLG India pointed out that despite the Commission's earlier rejection of its substitution application, the regulator had now agreed before the High Court to add it as an entity under investigation.

The petitioner requested that the court specifically record the Commission's undertaking to avoid any ambiguity regarding its status in the proceedings. The court accepted the request while disposing of the writ petition and leaving all legal rights and contentions open for future proceedings.

Investigation to continue

With the identity issue now addressed, the CCI's Director General is expected to continue the investigation with TLG India formally included as an entity under investigation.

The High Court did not examine the merits of the underlying cartelisation allegations or the legality of the ongoing investigation. Instead, it confined itself to recording the Commission's statement and disposing of the petition.

The order removes an important procedural hurdle in the CCI's advertising cartel probe, while leaving open the possibility of future legal challenges on substantive issues arising from the investigation.