The antitrust regulator has added Publicis' Indian operating entity to its investigation into alleged cartelization in the advertising industry.
The Competition Commission of India (CCI) has cleared the way for its investigation into alleged cartelization in the advertising industry to continue after telling the Delhi High Court it had no objection to adding TLG India, the Indian operating entity of France's Publicis Groupe, to the probe.
The legal challenge arose after Publicis argued that the CCI had initiated proceedings against the wrong entity. The company maintained that the investigation named "Publicis Groupe" — its global brand and French parent company — instead of TLG India, the legal entity through which it conducts business in India. After recording the CCI's position, the Delhi High Court disposed of the petition.
The CCI opposed simply substituting "Publicis Groupe" with TLG India, arguing that the Competition Act empowers it to investigate not only companies but also associations of persons. At the same time, the regulator said it had no objection to adding TLG India to the probe, thereby resolving the dispute over the identity of the entity under investigation.
The case forms part of one of the CCI's biggest investigations into India's advertising industry. The regulator is examining allegations that leading media agencies and industry bodies colluded to fix advertising rates, discounts and other commercial terms in violation of the Competition Act. The probe covers several global advertising networks, including Publicis, WPP's GroupM, Dentsu, Omnicom and Interpublic.
Source: Mint
