CCI alleges global ad agencies colluded on fees, cites evidence of cartelisation: Report

The Competition Commission of India (CCI) has found evidence that major global advertising agencies including WPP-owned GroupM, Interpublic Group, Publicis, and Dentsu colluded to fix the commission fees they charge advertisers, in violation of Indian competition laws, Reuters has reported.

According to the report, this finding emerged from a CCI document dated February 7, following surprise raids conducted in March 2025 at the local offices of these agencies and key industry bodies.

The Competition Commission of India (CCI) carried out search operations at the Indian offices of GroupM, Interpublic, Publicis, and Dentsu, along with visits to the premises of two key industry bodies — the Indian Broadcasting and Digital Foundation (IBDF) and the Advertising Agencies Association of India (AAAI). Officials also inspected the Indian Society of Advertisers (ISA), as part of what is shaping up to be one of the most significant antitrust investigations into the Indian media ecosystem in recent years.

The CCI’s preliminary assessment, as cited in the said document accessed by Reuters, stated that the AAAI and its member agencies appeared to be violating competition regulations. It added that the association frequently held virtual meetings where members coordinated on pricing strategies and discussed unified responses to clients. The document also mentions that punitive measures were considered against agencies that deviated from the agreed practices. According to claims, the group also predetermined the fee structure for services offered to advertisers under a fee-based model.

As per the report, in the document, CCI further noted that a separate cartel operates within the media buying arm of advertising agencies, and efforts are reportedly in progress to form a similar arrangement in the creative services domain.

To add context, historically, a 15% commission on media spend was considered the standard in Indian advertising, especially when an agency handled both creative duties and media buying (commonly known as AOR, or agency on record). Of this, around 12.5% typically went to the creative function, while 2.5% was retained by the media agency.

However, in recent years, this model has become more fluid.

In pure media AOR deals (without creative), commissions are often negotiated down to as low as 0.75%–1.5%, depending on the agency’s volume of business and client relationship. While 2.5% was once the norm, agencies today work at far lower margins due to rising competition, with some clients pushing even further for lower rates.

These figures are not formally documented, but are part of a long-standing informal understanding within industry bodies like AAAI.

The document accessed by Reuters highlights that the three industry bodies often act in concert, jointly negotiating matters that should ordinarily be handled independently by individual agencies. It also highlighted that these associations seem to craft advisories, guidelines, and negotiation frameworks aimed at protecting the collective commercial interests of their members.