Japan firms face music over Tokyo 2020 graft



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Companies fined over Olympic 2020 bid-rigging Image: Japan National Stadium, Tokyo-Good, CC BY-SA 4.0

The Japan Fair Trade Commission recently slapped fines totaling ¥3.3 billion on the advertising giant – the Dentsu Group Inc. – and six other ad agencies and event organizers for bid-rigging over the Tokyo Olympics and Paralympics.

‘the japan times’ stated that the six are – the Dentsu Group’s Dentsu unit, Cerespo, Fuji Creative, Hakuhodo (a Japanese advertising and public relations company), Same Two, and the Tokyu Agency.

Tokyo (Japan)-based the Japan Fair Trade Commission (FTC) is the competition regulator in Japan. It is a commission of the Japanese Government responsible for regulating the economic competition as well as enforcement of the Antimonopoly Act. Headed by a Chairman the commission is commonly known as the Kōtori.

The Dentsu Group Inc. is a Japanese international advertising and public relations company headquartered in Tokyo (Japan). It’s the largest advertising agency in Japan and ranks as the fifth-largest worldwide in terms of the global revenue. The company provides a wide range of services including marketing design, digital and social media content, communication design, promotions, data solutions, and social solutions.

Tokyo (Japan)-based the Cerespo Company Limited is a Japanese company specializing in event planning, production and management. They handle various events including promotions, sports competitions, ceremonies, and recreational events. Cerespo also provides services like venue construction, operation and security for these events. Additionally, they are involved in the planning, development, manufacturing, sales, and rental of event-related goods and fixtures.

Tokyo (Japan)-based the Fuji Creative Corporation (FCC) is a Japanese media company specializing in the production and distribution of television programs.

Minato City (Japan)-based the Tokyu Agency Inc. is a Japanese advertising agency that provides comprehensive advertising services including planning, coordination, production, and market research across various media.

The 2020 Summer Olympics, officially the Games of the XXXII Olympiad and officially branded as Tokyo 2020, were an international multisport event that was held from July 23rd-August 8th, 2021 in Tokyo, Japan, with some of the preliminary sporting events beginning on July 21st, 2021.

The 2020 Summer Paralympics, branded as the Tokyo 2020 Paralympic Games, were an international multisport parasports event held from August 24th-September 5th, 2021 in Tokyo, Japan.

‘the japan times’ further stated that the FTC also found an antimonopoly law violation by the ADK Marketing Solutions (a specialized operating company focusing on providing integrated marketing solutions based in Minato City, Japan) but refrained from imposing a fine on the firm as it declared the violation before the antimonopoly watchdog launched its probe.

Of the eight companies the seven other than the Dentsu Group received cease-and-desist orders.

A cease-and-desist letter is a document sent by one party, often a business, to warn another party that they believe the other party is committing an unlawful act, such as the copyright infringement, and that they will take legal action if the other party continues the alleged unlawful activity.

According to the commission, the firms’ rigged bids in April 2018 and after to select winners of the orders for planning test events for the Olympics and the Paralympics and had the winners also undertake event venue operations at the Games.

The Dentsu Group is alleged to have played lead roles in the anticompetitive practices together with the then-Deputy Chief of the Tokyo Games Organizing Committee, Yasuo Mori, who has already been convicted.

The company said that it will file for a lawsuit against the FTC fine and order.

The antimonopoly trials against the Dentsu Group and the five other firms as well as their officials involved are underway.

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