In a first, IBDF discloses CCI search and seizure as ad cartel probe continues

For the first time, the Indian Broadcasting and Digital Foundation (IBDF) disclosed details of the Competition Commission of India’s (CCI) search and seizure operation at its New Delhi registered office in March 2025. IBDF stated that the matter remains under investigation and that the CCI Director General has not sought any further details from the organisation.

The disclosure, contained in IBDF’s financial statements, says the CCI’s investigative wing conducted an unannounced search and seizure operation at the company’s registered office on March 18, 2025. During the search, IBDF learnt that the matter had been registered before the CCI as Suo Motu Case No. 02 of 2024.

The disclosure comes around 18 months after the search. At the time of the March 2025 raids, IBDF, the Advertising Agencies Association of India (AAAI) and the Indian Society of Advertisers (ISA) had not publicly commented on the searches. 

According to IBDF's disclosure, the organisation subsequently appointed external lawyers, who filed an inspection request to examine the CCI’s case records.

Based on the preliminary inspection conducted by its lawyers, IBDF said it understood that an August 9, 2024 CCI order had directed an investigation against ISA, AAAI, their members and IBDF for a prima facie violation of Section 3 of the Competition Act, 2002.

Section 3 deals with agreements that have, or are likely to have, an appreciable adverse effect on competition.

Probe covers industry bodies

The CCI investigation examined whether guidelines, advisories and commercial practices adopted by ISA, AAAI and IBDF could facilitate anti-competitive conduct.

The CCI had specifically examined industry documents and practices relating to the relationship between advertisers, advertising agencies and broadcasters.

The investigation subsequently resulted in searches at the offices of several major advertising and media agencies, besides the industry bodies. CCI also alleged that the regulator had found preliminary evidence of coordination on commissions and other commercial terms. These remain matters under investigation and are not a final finding of liability.

IBDF says court proceedings have affected summons

IBDF's disclosure also refers to legal proceedings arising from the CCI investigation.

It said a constitutional writ petition had been filed by one of the parties before the Delhi High Court, which then granted a stay on the summons. It further said that, in another constitutional writ petition, the Supreme Court had stayed the summons until the Delhi High Court decides the matter.

IBDF also disclosed that certain employees had received summons to appear before the DG-CCI. The company said it had responded by seeking deferment of the summons until the related proceedings before the High Court and Supreme Court were decided.

The organisation said it is currently awaiting a response from the DG-CCI.

Importantly, IBDF stated that the case is currently under investigation and the DG-CCI has not reached out to IBDF for any further details.

Accordingly, the foundation said it did not consider any adjustment necessary in its standalone financial statements in relation to the matter.

The disclosure provides the clearest account so far from IBDF on its involvement in the CCI investigation and confirms that the regulator's proceedings against the industry bodies have not reached a final conclusion.

The CCI investigation is therefore still at the investigative stage, with the DG-CCI yet to conclude its proceedings against the entities named in the case. A final determination on whether there was any contravention of competition law will rest with the CCI after completion of the statutory process.