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4. The informant has alleged that DAVP is the largest buyer of advertisement space in the market across several formats and thus, enjoys a dominant position in the market. It has further been alleged that DAVP does not have the capability and resources to provide the quality services. As per informant, DAVP provides cheaper services by offering 15% agency commission to the customers in the form of a

1) o-

12. Dominance: DAVP is the multi-media advertising agency of the Government of India. The selection of newspapers / journals that will receive government advertising is made by DAVP. It empanels newspapers based on the guidelines laid out in the Policy of the Government of India and negotiates contract rate advertisements - with them on behalf of the government. The ministries and other government departments are entitled to advertise through other agencies not affiliated with the DAVP. However, these agencies need to offer rates similar to the ones that DAVP does. However, in most cases, that is rot possible since the DAVP can bargain for the most competitive rates.

medium and srnafl newspapers) advertisements placed by DAVP are the only source of revenue to them" It reflects the dominant position of DAVP in the relevant market.

14. Abuse:The abuses mentioned by the informant arerelated to (I) Policy which makes it mandatory for the government departments to use the services of the DAVP

(ii) passing of the discount received by DAVP to the departments seeking advertisement through DAVP.

JS. Regarding the abuse no. (I) mentioned above, the policy of the government has the effect of producing non-level playing field in the relevant market. This non- level playing field denies the other advertising agencies access to the relevant market. Moreover, the condition on the Government departments that in case they resort to private advertising ageilcies, the final negotiated rate should not he more than the DAVP rates coupled with the DA\IP's passing on 15% discount to the advertising departments aggravates the issue of non-level playing field.

16. According to Press Council of India, alone DAVP accounts for about 80%-1.00% share of income of some category of newspaper; it gives an idea that a major portion of market is out of reach of the private advertising agencies.

17. On the second anti-competitive aspect, discount offered by DAVP to Govt. department is unfair. DAVP being totally dependent on the Government funding is able to pass on the discount to the advertising department. The private agencies on the other hand being run on commercial principles are unable to pass on similar benefit to the advertising departments. This discount is the only income for the private advertising agencies and out of this income only they have to meet all their expenditures. This way it is extremely difficult for the private advertising agencies to match the DAVP rates.