Indian Ad Agencies Warned Against WhatsApp Discussions After Antitrust Raids

In the wake of sweeping antitrust raids by Indian authorities, leading advertising agencies have been cautioned against sharing sensitive commercial information through informal communication channels, including WhatsApp, according to a document cited by Reuters.

The advisory, issued by the Advertising Agencies Association of India (AAAI), follows surprise inspections carried out by the Competition Commission of India (CCI) on March 18. These dawn raids were part of a broader investigation into alleged price collusion and discount manipulation in India’s $18.5 billion advertising industry—one of the fastest-growing globally and currently ranked the eighth largest by revenue, Reuters reported.

The CCI’s actions have rattled the country’s dynamic advertising ecosystem, especially the broadcast and digital streaming sectors, where major players like Reliance-Disney and Sony dominate. The probe is likely to have a lasting impact on how media buying is structured and priced in India, particularly among global agencies operating in the region.

The AAAI, whose membership includes prominent firms such as GroupM (owned by WPP), Japan’s Dentsu, and France’s Publicis, has urged its affiliates to steer clear of discussions involving pricing or any other commercially sensitive data. In an advisory dated March 26 and prepared by legal firm Trilegal, the association emphasized that members must exit existing WhatsApp groups and cease any form of such communication, per Reuters.

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The document explicitly warned, “Members are requested not to discuss (through any mechanism, including emails, WhatsApp groups, documents, any informal, or formal meetings), any commercially sensitive information.” This includes pricing strategies, which could fall afoul of India’s competition regulations.

The CCI’s probe was reportedly triggered by leniency applications, a mechanism that incentivizes whistleblowers with reduced penalties in exchange for evidence of anti-competitive behavior. Among those cooperating with the investigation is Dentsu, which reportedly submitted internal findings of collusion along with a 2023 procedural document jointly issued by the IBDF (Indian Broadcasting and Digital Foundation) and AAAI, according to Reuters.

The March raids also extended to the offices of the IBDF in New Delhi, a powerful industry body representing major broadcasters. The investigation remains ongoing, and the CCI typically does not disclose details until a case reaches completion—a process that can take years.

While the CCI, AAAI, and involved media buying agencies have not responded to Reuters inquiries, Trilegal declined to comment, citing ongoing legal proceedings. The advisory from AAAI stressed that any form of coordination involving sensitive business data could raise red flags under India’s competition laws and expose parties to further enforcement action.

Source: Reuters