Japan’s major advertising firms searched as Tokyo Olympic corruption probe widens

Tokyo, Japan | Xinhua | Japanese prosecutors and a fair trade watchdog on Tuesday searched units of major advertising agencies ADK Holdings Inc. and Dentsu Group Inc. on suspicion of bid rigging for test events contrasts of last year’s Tokyo 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 organize 56 test events held in 2018 were manipulated, with the amount of the contracts totaling about 3.9 million U.S. dollars, the media reported.

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 totaled 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 organizing committee, which created a list of advertising agencies and event firms, and categorized 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, the 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.

Japan’s top 3 advertising agencies implicated in Olympic bid-rigging scandal