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Tag: Competition Commission of India

  • Publicis drags CCI to court over access to files in ad cartel probe

    Publicis drags CCI to court over access to files in ad cartel probe

    MUMBAI: Reuters has reported that  Publicis has hauled India’s antitrust regulator to the Delhi high court, accusing it of stonewalling requests for access to case files in a high-stakes price-fixing investigation that has rattled the country’s $30bn media and entertainment sector.

    The Competition Commission of India (CCI) stunned the industry in March with dawn raids on WPP’s GroupM, Dentsu, Publicis, Omnicom and others, probing suspected collusion on publicity rates and discounts. Sources told Reuters the CCI’s early findings suggest the firms coordinated via a WhatsApp group, struck secret deals, and teamed up with broadcasters to freeze out agencies that refused to play along.

    Triggered by Dentsu’s whistle-blowing under the CCI’s leniency scheme in February 2024, the probe could see penalties of up to three times profit or 10 per cent of global turnover for each year of wrongdoing. Publicis, which operates through TLG India, says it cannot prepare a defence without access to the records, and wants the CCI to pause its investigation until the files are handed over.

    The watchdog has yet to comment. The court is expected to hear the case next week.

  • Google says it prepared to open Play Store gates for real-money gaming in India

    Google says it prepared to open Play Store gates for real-money gaming in India

    MUMBAI: Google has told India’s competition watchdog it is finalising a business model to accommodate the country’s booming real-money gaming (RMG) sector, in a proposal that could see all permissible formats return to the Play Store. The Competition Commission of India (CCI), which is conducting an ongoing antitrust probe, has invited public comments on Google’s plan until 20 August.

    All India Gaming Federation (AIGF) chief executive Roland Landers  called the move “a timely and welcome step” toward a fairer and more transparent digital ecosystem. He noted that Google’s recognition of certificates issued by self-regulatory bodies such as the All India Skill Gaming Council (AISGC) would “empower responsible operators, support innovation, and ensure a safer experience for Indian consumers.”

    The AISGC, chaired by a former supreme court justice, has since 2018 applied a detailed legal and analytical framework to determine whether a game qualifies as one of skill under Indian law.

    AIGF, the country’s largest and oldest gaming industry body, said the proposal could lower entry barriers, level the playing field for smaller firms, and boost jobs and digital inclusion. The federation represents more than 120 members, including many MSME startups, who together serve over 40 crore Indian gamers and are collectively valued at more than $10 billion.

    If the CCI approves the plan, India’s gaming sector — long hobbled by inconsistent platform policies — could be set for a growth spurt.

  • Eenadu TV no longer an associate; NW18 assigns voting rights to promoter

    Eenadu TV no longer an associate; NW18 assigns voting rights to promoter

    MUMBAI: In a pivotal move linked to the grand consolidation of India’s entertainment landscape, Eenadu TV is no longer an associate, as Network 18 has assigned its 24.5 per cent voting rights in the broadcaster to ETPL’s promoter and continues to retain its economic rights. The transaction, completed at 2:06 p.m. on 7 July, effectively ends ETPL’s status as an associate of the media conglomerate.

    Network18 informed the Bombay stock exchange about this change via a regulatory filing. 

    The assignment of voting rights—mandated under a Competition Commission of India (CCI) order dated 27 August 2024—was part of the conditions for the greenlighting of the blockbuster merger between Viacom18 (now Studio18 Media Pvt  Ltd) and Star India (now JioStar India Pvt Ltd).

    Though stripped of control, Network18 retains full economic interest in the 24.5 per cent stake. The company said the promoter of ETPL has no ties to Network18’s promoter group, and the deal doesn’t qualify as a related-party transaction.

    As of 31 March 2025, ETPL accounted for a hefty 32.61 per cent of Network18’s consolidated net worth. But despite the shift in status, the company claims there will be no hit to its balance sheet, thanks to a fair valuation mechanism under prevailing accounting standards.

  • Omnicom–IPG merger gets greenlight from CCI, ad world braces for a mega shake-up

    Omnicom–IPG merger gets greenlight from CCI, ad world braces for a mega shake-up

    MUMBAI: India’s competition watchdog has given a decisive thumbs-up to one of the biggest shake-ups in adland: Omnicom Group Inc.’s acquisition of sole control over The Interpublic Group of Companies, Inc. (IPG).

    The Competition Commission of India (CCI) has formally approved the merger, clearing the way for New York-based Omnicom to swallow IPG whole. The deal sees EXT Subsidiary Inc.—Omnicom’s Delaware-registered arm created for the transaction— merging with Interpublic group, followed by its vanishing in a legal sleight of hand, with IPG emerging as a wholly owned subsidiary.

    The green light marks a major milestone in the creation of an advertising, media and communications (AMC) colossus that will now tower over rivals in over 100 countries—including India.

    Both Omnicom and IPG have long had a robust presence in India, vying for dominance in marketing communications and media buying. With the merger officially sanctioned, expect ripples—if not tsunamis—across client portfolios, agency turf wars, and talent poaching strategies.

    Omnicom brings to the table a vast arsenal of brand advertising, CRM, media planning, PR and specialty comms across more than 70 nations. IPG counters with an 80-brand empire powered by 57,400 employees delivering everything from creative and data to experiential marketing.

    The merger has got the go-ahead in 10 of the 20 global markets it has a presence in, according to reports. And it will have a smaller market share in India than WPP Media. 
     

    The CCI website only has a partial copy of the merger  application uploaded while its clearance document has yet to be put up. 

    As the global titans fuse, the industry braces for impact—and reinvention.

  • CCI to crack the whip harder on anti-competitive cartels

    CCI to crack the whip harder on anti-competitive cartels

    MUMBAI: The investigation into alleged ad pricing collusion between  select ad agencies is just one of the proactive initiatives that the competition watch dog the Competition Commission of India (CCI) has been undertaking. Finance and corporate affairs minister Nirmala Sitharaman told the Lok Sabha  today that 35 cartel cases across various sectors over the past five financial years, up to 13 March 2025, have been under the CCI’s magnifying glass. And this is just a start:  with a sharper legal framework and global collaborations, the watchdog is stepping up its efforts to keep markets fair.

    She informed the house that the watchdog  has inked bilateral and multilateral agreements with competition authorities in Egypt, Mauritius, Japan, Brazil, Canada, Australia, the European Commission, Brics nations and the US Department of Justice. These pacts enable enforcement cooperation, subject to each country’s legal framework and resources.

    The Competition (Amendment) Act, 2023, introduced the ‘lesser penalty plus’ (LPP) framework under Section 46, offering incentives for cartel members to turn whistleblowers. The CCI (Lesser Penalty) Regulations, 2024, which replaced the 2009 rules, reward existing applicants who spill the beans on previously unknown cartels.

    To widen its net, CCI has also brought in the ‘hub-and-spoke’ mechanism under Section 3(3) of the Competition Act, 2002, ensuring that enterprises or individuals indirectly facilitating cartels are also held accountable.

    India has signed 14 free trade agreements (FTAs), some of which contain specific competition clauses to curb anti-competitive practices. CCI also has a dedicated division for market analysis and research, aimed at detecting unfair practices before they spiral.

    Enforcement is only part of the game. Over the last five years, CCI has held 1,446 advocacy programmes to educate businesses and policymakers on competition rules. By ramping up market studies and training initiatives, the regulator is working to sustain a fair and thriving business environment.

    With cartels under increased scrutiny and tougher penalties in place, competition in India’s markets is only set to heat up.

  • Indian antitrust watchdog raids global ad giants over alleged price collusion

    Indian antitrust watchdog raids global ad giants over alleged price collusion

    MUMBAI: India’s competition regulator has launched a surprise raid on several advertising behemoths, including GroupM, Dentsu and Interpublic Group, as well as a broadcasters’ industry body over allegations of price-fixing, sources with direct knowledge told Reuters on Tuesday.

    The Competition Commission of India’s officers descended upon roughly 10 locations in Mumbai, New Delhi and Gurugram after initiating a case against the agencies and top broadcasters for allegedly colluding to fix advertising rates and discounts.

    The raids come at a pivotal moment for India’s advertising landscape, which is experiencing significant upheaval following the $8.5 billion merger between Walt Disney and Reliance’s Indian media assets.  This regulatory blitz also follows hot on the heels of Omnicom Group’s $13.25 billion all-stock acquisition of rival Interpublic Group in December, a deal that created the world’s largest advertising agency.

    According to one source who spoke to Reuters, the watchdog is investigating how advertising agencies allegedly conspire with certain broadcasters to fix advertising prices when selling to clients, including discussions around discounts. The allegations reportedly include concerns that certain broadcasters engaged in “collective action” to avoid offering discounts on advertising rates.

    The Indian Broadcasting &  Digital Foundation (IBDF), which represents heavyweight domestic broadcasters including billionaire Mukesh Ambani’s Reliance-Disney joint venture and Sony and Zee, has remained tight-lipped about the investigation.

    Representatives from GroupM (owned by Britain’s WPP), IPG Mediabrands and Japan’s Dentsu all declined to comment when approached by Reuters, as did the competition commission itself, which maintains a policy of not publicly disclosing details of enforcement actions or price collusion cases.

  • Tata Sons get CCI nod for additional slice of Tata Play

    Tata Sons get CCI nod for additional slice of Tata Play

    MUMBAI: Tata Sons has secured regulatory approval to tighten its grip on the arguably the country’s best distribution platform operator. The Competition Commission of India (CCI) has given the green light for the conglomerate to acquire a 10 per cent stake in Tata Play from Temasek-owned Baytree Investments. 

    The transaction, valued at an unconfirmed $100 million, boosts Tata Sons’ ownership to 70 per cent, with Walt Disney holding the remaining 30 per cent. Industry insiders note the deal values Tata Play at a modest $1 billion—a significant haircut from its earlier publicly known  $3 billion valuation.

    “Commission approves the acquisition of certain additional shareholding in Tata Play Limited by Tata Sons Pvt Ltd  from Baytree Investments (Mauritius) Pte Ltd,” the CCI declared in Monday’s press release.

    The move comes as speculation swirls around a potential merger between Tata Play and Bharti Airtel’s rival DTH business. Both companies are reportedly engaged in bilateral talks, with sources suggesting a share-swap arrangement that would make Airtel the majority stakeholder with 52-55 per cent of the combined entity. Tata Play’s stakeholders, including Disney, would retain 45-48 per cent, according to unconfirmed media reports.

    Airtel’s senior management is expected to lead the merged business, with Tata angling for two board seats. 

     For Tata Sons, already registered as a “Systemically Important Non-Deposit Taking Core Investment Company” with the Reserve Bank of India, this represents another strategic tile in its sprawling business mosaic.

    The regulatory approval mirrors last year’s CCI nod for Bharti Airtel’s acquisition of a 20 per cent stake in its DTH arm, Bharti Telemedia, from Warburg Pincus affiliate Lion Meadow Investment Ltd  for Rs 3,126 crore.

  • Tata Sons seeks CCI green signal for additional 10 per cent stake in Tata Play

    Tata Sons seeks CCI green signal for additional 10 per cent stake in Tata Play

    MUMBAI: Tata Sons, the promoter of The Tata group, is seeking to own a larger slice of its distribution platform operator Tata Play. It has sought approval from india’s fair trade regulator, the Competition Commission of India (CCI), to acquire an additional 10 per cent  stake in Tata Play. The stake will be purchased from Baytree Investments (Mauritius) Pte Ltd, an affiliate of Singapore’s sovereign wealth fund, Temasek Holdings.

    Currently holding a 60 per cent stake in Tata Play, Tata Sons’ acquisition will increase its ownership to 70 per cent. Tata Sons is an investment holding company registered as a core investment company with the Reserve Bank of India, classified as a systemically important non-deposit taking core investment company.

    Tata Play, formerly known as Tata Sky, is a leading content distribution platform in India, offering pay TV  and direct-to-home (DTH) services. it also operates Tata Play Binge, an over-the-top (OTT) platform that aggregates popular streaming apps under a single subscription model.

    The proposed transaction has been notified to the CCI under sections 6(2) and 5(a) of the Competition Act, 2002. these provisions mandate regulatory approval for acquisitions exceeding certain thresholds.

    Both Tata Play and Tata Sons have asserted that the transaction will not adversely affect competition in any relevant market. They have appealed to the  CCI to  examine the deal in the context of India’s wired broadband internet services and the complementary linkages between Tata Sons’ internet services and Tata Play’s online platforms.

    Meanwhile, the buzz of a transaction between Airtel and Tata Play taking place seems to have died down. Apparently, valuations are an issue and the further loss of subscribers by the  pay TV ecosystem has put a dampener in any deal going forward, reveal sources close to the conversation. Also, the earlier transaction between the Essel group Dish TV and Videocond2h didn’t yield any clear identifiable long term benefits for the former as it struggles to sustain itself in a sector that is being gnawed away at by DD’s free DTH service FreeDish, and low cost streaming services. 

    And going by the way that Tata Sons has applied to the CCI is it possible that the group has decided to retain its broadband part of Tata Play while letting go off of the video services portion the Distribution platform operator provides?If that is the case, then who is the buyer?  Or is it that the group still sees potential in both the video and internet delivery components of Tata Play and has decided to continue to invest in both? The Tata group is not talking;  neither is Tata Play.

    Guess, we will have to keep watching this space. 

  • Competition Commission clears Alphabet’s investment in Flipkart

    Competition Commission clears Alphabet’s investment in Flipkart

    MUMBAI: Indian ecommerce giant  Flipkart  -owned by  US retail major Walmart – has a new minority shareholder. India’s monopolies  and fair trade watchdog, the Competition Commission of India, on 26 November, gave the green signal to Alphabet’s subsidiary Shoreline International Holdings LLC to acquire a stake in it. Shoreline International Holdings is a wholly-owned offshoot  of Alphabet,  Google’s parent company. It is a holding firm and does not own or operate any Google products or services.

    “The proposed transaction comprises an investment through subscription of shares of Flipkart Pvt Ltd (Target) by Shoreline International Holdings LLC (acquirer) and an arrangement between an affiliate of the acquirer and the target’s subsidiary for the provision of certain services,” the regulator said in a release.

    Flipkart mainly  offers wholesale cash and carry operations and runs marketplace-based e-commerce platforms to facilitate trade between customers and sellers in India. 

    In 2023, Flipkart had started a funding round of close to a billion  Us dollars which included $350 million from Google and around $600 million from Walmart. The agreement with Google also included, according to reports, access to its cloud services which would allow it expand its digtal infrastructure further. With that its valuation had risen to $36 billion and it said it would use the money to expand into quick commerce and other fintech ventures.

    85 per cent owned by Walmart, Flipkart will probably move towards an IPO in the not-too-distant future, as it is something which the Binny Bansal and Sachin Bansal-founded firm has been thinking about for sometime. 

  • Reliance-Disney Star India merger to see closure within a couple of months

    Reliance-Disney Star India merger to see closure within a couple of months

    Mumbai: Reliance Industries Limited (RIL) is on track to finalise its merger with Disney’s India operations by the third quarter of FY25  – a move anticipated to significantly bolster its media presence. (Q3 FY 2025 ends on 31 December 2024, which means the merger has got just about two months, if not earlier, to achieve closure). This announcement follows RIL’s  Q2 FY 2025  financial results, showcasing a resilient performance across its diversified business segments.

    On 28 September, the ministry of information & broadcasting (MIB) granted approval to RIL for the transfer of channels from Viacom18 to Disney Star India, paving the way for the $8.5 billion merger with Disney. The merger of Viacom18 and Star India has already been given the green signal from the Competition Commission of India (CCI- subject to certain voluntary conditions), and the National Company Law Tribunal (NCLT) has also given it the thumbs up. “The companies are now securing additional required approvals, with the transaction expected to close in Q3 FY25,”  Reliance Industries announced in its quarterly earnings report on 14 October 2024.

    In a statement, Reliance chairman & managing director, Mukesh D. Ambani expressed optimism about the merger’s potential impact: “This merger will create a powerful platform for delivering exceptional content and experiences to our customers.” He highlighted the strategic alignment between Reliance’s digital services and Disney’s rich content library as a catalyst for growth.

    “Viacom18’s integration with Disney’s assets is expected to create a formidable entertainment platform, offering a diversified content library and reaching millions of viewers across the country,” a company spokesperson stated. “The strategic alignment of media assets will enhance our ability to deliver premium content and attract more subscribers.”