CCI's Probe into Publicis Groupe's Indian Arm TLG India Faces Legal Hurdle
CCI's Probe into Publicis Groupe's Indian Arm TLG India Faces Legal Hurdle
Introduction
The Delhi High Court has sought the response from the Competition Commission of India (CCI) on a plea by TLG India, the Indian arm of Publicis Groupe, seeking directions to the competition watchdog to furnish documents relating to the alleged cartelisation in the advertising sector.
Factual Background
TLG India approached the court challenging the CCI's investigation into alleged cartelisation in the advertising sector. The company argued that the investigation is fundamentally flawed because it targets "Publicis Groupe," which is not a legal entity either in India or France.
Procedural Background
The CCI had initiated an investigation into alleged cartelisation in the advertising sector, but TLG India claimed that it had not been properly identified as a respondent in the investigation. The company had applied for access to case records, including the prima facie order, but was denied inspection of the files for more than four months.
Contentions of Parties
TLG India: The company argued that the investigation is invalid because it targets a non-legal entity, and that it has been denied access to case records in violation of principles of natural justice.
CCI: The CCI argued that TLG India is not a party to the investigation and therefore, cannot seek inspection of case records.
Court's Observations and Directions
The bench of Justice Sachin Datta observed that when large corporate groups are investigated, a specific entity must be identified for the purpose of proceedings. The court directed the CCI to clarify which legal entity is under investigation and to produce the prima facie order at the next hearing.
Decision
The court granted CCI two weeks to file its reply and also directed that the prima facie order be placed on record for its perusal. The matter will be heard further after the CCI files its response.
In this case the petitioner was represented by Mr. Ritin Rai, Sr. Advocate along with Ms. Avantika Kakkr, Mr. Aman Singh, Mr. Pushkar Shailendra Singh, Ms. Ankita Gupta and Mr. Varun Singh, Advocates.
Meanwhile CCI was represented by Mr. Jayant Mehta, Sr Advocate and Mr. Saurabh Chadda, Mr. Rohit Bhagat, Mr. Vikramaditya Sanghi, Mr. Pragyesh Pratap Singh and Ms. Aprajita, Advocates.
