TOKYO, Nov 30 (NNN-NHK) – Japanese prosecutors and a fair trade watchdog, yesterday, searched units of major advertising agencies, ADK Holdings Inc. and Dentsu Group Inc., on suspicion of bid rigging for event contracts, of last year’s Olympics, local media reported.
The investigation into ADK Marketing Solutions Inc. and Dentsu Live Inc. came, after prosecutors searched six other firms, including Japan’s biggest advertising agency Dentsu and Hakuhodo Inc., the second largest, on Friday and Monday, over the bidding for contracts awarded to nine companies, according to Kyodo News.
There are allegations that 26 open bids for the right to organise 56 test events held in 2018 were manipulated, with the amount of the contracts totaling about 3.9 million U.S. dollars.
Statistics from the Tokyo metropolitan government showed that, the value of all the contracts signed with the nine firms for services related to test and actual games events totalled at least 144.98 million U.S. dollars. Prosecutors are looking into the further possibility of collusion in agreeing contracts for vast sums, the media said, citing sources close to the matter.
The organising committee, which created a list of advertising agencies and event firms, and categorised them into groups according to their respective experience in each sport, is suspected to have shared and used the list in arranging the successful bidders, sources said.
Firms may face charges of violating antitrust laws, if this is proven.
ADK Holdings, the third-largest advertising agency in Japan, and Dentsu Live said, they will cooperate with the investigation.– NNN-NHK
