Dentsu's leniency petition to CCI included WhatsApp chats; agency clarifies

New Delhi: Dentsu India’s leniency petition in an Enforcement Directorate investigation is back in focus yet again after the agency confirmed why it filed the petition.

It was perceived by the industry insiders that the petition led to the raids conducted by the Competition Commission of India earlier this year.

Dentsu filed for leniency with the CCI in February 2024 under a disclosure program that allows reduced penalties in exchange for exposing cartel activity. 

The petition allegedly disclosed to India’s antitrust regulator how major global agencies coordinated to fix media buying rates and eliminate pricing competition.

In a written statement shared with BestMediaInfo.com, a Dentsu India spokesperson said, "It is among the country’s leading agency networks, and with that comes the responsibility to act with integrity and accountability. We had a choice – to remain passive or drive change." 

The agency told BestMediaInfo.com that in February 2024, it proactively approached the Competition Commission of India (CCI) suo moto under its Leniency framework. “This was not a reaction to external pressure but a decision to support reform from within,” read the statement.

The statement further read, “We proactively implemented meaningful changes, including enhanced audits, stricter governance, and tighter internal controls. These reflect our ongoing commitment to build trust through transparency, action, and accountability to safeguard the interests of our clients.”

“Change can't be affected by walking away – this may be a challenging moment for an industry we are proud to be a part of, but it also presents an opportunity for collective reform. At Dentsu India, we are committed to this change for our clients and the future of a thriving industry.”

The revelations are part of an investigation by the CCI, which has uncovered evidence of behind-the-scenes coordination among top executives of global firms, including WPP Media, Omnicom Media, IPG Mediabrands, Publicis, Havas Media, Dentsu, and Madison World.

According to a Reuters report, key evidence in the case includes a WhatsApp group chat titled “AAAI media agencies”, formed in August 2023, where at least 11 top media agency executives discussed pricing strategies, shared client-specific plans, and coordinated their responses during pitch processes. 

The chat and meeting records form the basis of a confidential CCI dossier, which alleged violations of India’s competition laws.

The participants in the group included Dentsu’s South Asia CEO Harsha Razdan and media business head Anita Kotwani, along with WPP’s Prasanth Kumar, Omnicom’s Kartik Sharma, IPG’s Shashi Sinha, Publicis’ Anupriya Acharya, Havas’ Mohit Joshi, and Madison’s Sam Balsara.

As per the Reuters report, the CCI documents reveal that in August 2023, the Advertising Agencies Association of India (AAAI) circulated guidelines mandating minimum commission rates for media buys. Soon after, a joint pact was signed by AAAI and the Indian Broadcasting & Digital Foundation (IBDF), barring agencies from offering discounts while bidding for new business. The stated goal: to eliminate pricing as a factor in pitch decisions.

“Lower pricing as a reason to award a pitch must be eliminated,” the pact read.

By December 1, agency leaders, in a meeting cited in the CCI documents, described the arrangement as a “great success” and resolved to continue coordinating.

Dentsu’s disclosures to the CCI included a transcript of the WhatsApp chat, which also featured discussions involving high-profile clients such as Swiggy, Meesho, Cipla, and Kshema Insurance. 

The report further stated that in one instance, WPP’s Kumar helped draft a collective response to Swiggy regarding industry-standard rebates. “Ok, all aligned, thanks,” he wrote after consensus was reached.

Another conversation quoted in the CCI dossier showed a Dentsu executive stating that “the lowest we go to is retain 30% and 70% we pass back to the client,” highlighting how rebate structures were being informally aligned.

The fallout extended to alleged punitive tactics. Other findings of the Reuters report are that in August 2023, Kumar wrote to Disney India urging broadcasters not to offer business to ITW Consulting, which had breached the pricing pact. 

Omnicom’s Sharma later complained in the WhatsApp group that ITW had again secured a direct deal with one of their clients on Disney’s Hotstar during the ICC Cricket World Cup. “This nuisance has to stop,” he wrote.

The CCI’s investigation, which began in 2023 and included raids in March this year, is examining potential violations by the agencies and their association bodies.