Madison approaches Delhi HC to halt CCI’s antitrust probe into the ad agency

Madison Communications has moved the Delhi High Court seeking to quash the Competition Commission of India’s (CCI) ongoing antitrust investigation against the advertising agency, news agencies have reported. 

The agency has alleged procedural violations during the regulator’s raids earlier this year, including questioning of senior leadership without legal representation and lack of access to seized documents.

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Madison was among several advertising agencies and broadcasters searched by the CCI in March as part of a probe into alleged collusion over media rates and discounts. The investigation is one of the most extensive enforcement actions ever undertaken in the Indian advertising ecosystem.

According to a Reuters report, Madison’s petition, filed on October 8, is the first legal challenge by any agency seeking to stop the probe. The agency has raised concerns around how its executives were interrogated and the manner in which search operations were conducted. It has also contested subsequent summons issued to its Chairman Sam Balsara and Executive Director Vikram Sakhuja, who have been called in next week for further questioning.

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As per Reuters, the agency has also said in the petition that they were questioned in the night.

e4m reached out to Madison but no response was received till the time of filing this copy.

The CCI investigation was triggered by information submitted under its leniency programme in early 2024, reportedly by dentsu. Preliminary findings had suggested that several leading agencies may have coordinated pricing strategies through informal channels, including messaging platforms.

The case will be taken up by the Delhi High Court today. The judge may either admit Madison’s plea, which could lead to a detailed hearing over the coming weeks, or reject the petition. The court could also consider temporarily pausing the ongoing investigation.

The CCI probe has already seen other legal interventions. Publicis Groupe had earlier approached the court in August seeking access to case files but has not challenged the probe itself.