Publicis sues CCI over denied access to case files in ad agency probe

New Delhi: French advertising giant Publicis Groupe has filed a lawsuit against India’s Competition Commission of India (CCI), accusing the antitrust regulator of withholding critical case files in a high-profile investigation into alleged price-fixing within the advertising industry. 

As per a Reuters news story, the legal action, lodged with the Delhi High Court on August 11, marks the first court challenge in the CCI’s sweeping probe, which has rattled India’s nearly $30 billion media and entertainment sector.

The CCI launched its investigation early this year with surprise raids on major ad agencies, including Publicis, WPP’s GroupM, Dentsu, Omnicom, and others, over suspicions of collusion in setting publicity rates and discounts. 

The regulator’s initial findings suggest that these firms allegedly coordinated pricing through a WhatsApp group, entered secret agreements, and collaborated with broadcasters to sideline non-compliant agencies. 

The probe was initiated following disclosures by Dentsu under the CCI’s leniency program, which offers reduced penalties for companies that provide evidence of misconduct.

Publicis, in its court filing submitted by its Indian entity TLG India, argued that the CCI’s refusal to provide access to case files prevents the company and its employees from understanding the allegations against them and preparing an adequate defense. 

The company had previously urged the CCI in July to pause the investigation until the records were shared, a request that went unanswered. “The lack of access to case records leaves Publicis and its employees in India unable to respond effectively to the allegations,” the filing stated, according to Reuters.

The lawsuit also seeks to quash a CCI summons issued on August 4 to Publicis South Asia chief Anupriya Acharya, directing her to appear before investigators and provide documents, including key contracts related to revenue sharing. 

Publicis contends that the summons is unjust without access to the case details. The CCI did not respond to queries regarding the lawsuit, and the Delhi High Court is expected to hear the case next week.

The investigation has sent shockwaves through India’s advertising industry, with the CCI targeting not only major agencies but also industry bodies like the Indian Broadcasting and Digital Foundation (IBDF) and the Indian Society of Advertisers (ISA). 

If found guilty, the agencies could face severe penalties, including fines of up to three times their profits or 10% of their Indian entities’ global turnover for each year of misconduct, as per India’s competition laws.