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CCI Misreads How Ad Pricing Works
Financial Express Pune
|August 26, 2025
In March, the Competition Commission of India (CCI) raided leading advertising agencies — GroupM, Dentsu, Publicis, and IPG — along with industry bodies such as the Indian Broadcasting and Digital Foundation (IBDF) and the Advertising Agencies Association of India (AAAI) over allegations of cartelisation and price collusion.
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Since then, the $16-billion advertising industry has been under heightened regulatory scrutiny. In a conversation with Manu Kaushik, Srinivasan K Swamy, the newly elected president of AAAI, speaks about the CCI probe, challenges in audience measurement, and the road ahead for the industry. Excerpts:
What's your take on the ongoing CCI probe?
CCI received a complaint from one of our members and initiated an investigation. Their preliminary view is that some agencies colluded on pricing. I find this conclusion narrow and simplistic. Advertisers do not choose agencies on price alone — strategy, team strength, and creativity are far more decisive. Price variations between agencies are marginal and cannot materially influence advertiser decisions.
What about the charges of cartelisation and price undercutting?
Dit verhaal komt uit de August 26, 2025-editie van Financial Express Pune.
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