MAM
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.
Brands
Jubilant FoodWorks faces Rs 47.5 crore GST demand, plans appeal
Tax authorities flag alleged misclassification of restaurant services
MUMBAI:Â Jubilant FoodWorks Limited has landed in a tax tussle after receiving a GST demand of Rs 47.5 crore from the office of the additional commissioner of CGST and central excise in Thane, Maharashtra.
The order, issued under the provisions of the Central Goods and Services Tax Act, 2017, relates to an alleged incorrect classification of certain services under the category of restaurant services. According to the tax authorities, this classification resulted in a short payment of goods and services tax for the period between the financial years 2019-20 and 2021-22.
The demand includes Rs 47.5 crore in GST along with an equal amount as penalty, in addition to applicable interest. The order was received by the company on March 13, 2026.
In a regulatory filing to the BSE Limited and the National Stock Exchange of India Limited, the company said it disagrees with the order and believes its arguments were not adequately considered.
The company is preparing to challenge the decision and plans to file an appeal. It added that once the redressal process is complete, the demand is likely to be dropped.
Despite the sizeable figure attached to the notice, the company said it does not expect any material impact on its financials, operations or other activities.
The disclosure was signed by Suman Hegde, EVP and chief financial officer, who confirmed that the company received the order at 19:06 IST on March 13 and has already initiated steps to contest it.
The development places the quick service restaurant major in the middle of a tax debate that could hinge on how certain restaurant-linked services are classified under GST rules. For now, the company appears ready to take the matter from the tax office to the appeals desk.
