• by Steve McClellan  @mp_mcclellan, February 13, 2023

The Japan Times reported last week that a regional government—Osaka—has suspended Dentsu from bidding for any of its contracts for a year.

The suspension followed the arrest of a former executive of the agency in connection with a bid-rigging scandal involving contracts linked to the Tokyo Olympics.

The report also indicated that the Tokyo Metropolitan Government had taken similar action, suspending the firm from contract bids for one year.

A separate Times article reported that the Tokyo prosecutors office and the government Fair Trade Commission were considering charges against Dentsu and other agencies including Hakukodo, Kokyu Agency and event companies Cerespo, Fuji Creative and Same Two.

The alleged wrongdoing had to do with bids for contracts for managing venues at the games according to the report.

Dentsu Inc. in Japan issued a statement:

“Dentsu Inc. takes this situation very seriously. The company will fully cooperate with the authorities in their investigation. Once the investigation is concluded, Dentsu Inc. will conduct its own investigation to determine the facts of the matter and the cause in addition to developing further measures to prevent recurrence. Based on the results of the investigation, Dentsu Inc. will take strict actions to restore the trust of all stakeholders.”