• by Steve McClellan  @mp_mcclellan, February 28, 2023

Dentsu confirmed today that it was indicted for violating Japan's Antimonopoly Act in connection with bid rigging activities that took place during the leadup to the 2020 Olympic and Paralympic Games.

Other companies were also charged including Hakuhodo, Tokyu Agency, Fuji Creative, Cerespo and Same Two.

Dentsu also confirmed that an employee was charged by the Japan Fair Trade Commission and Tokyo District Public Prosecutors Office for alleged violation of the Antimonopoly Act.

“The Company takes this situation seriously and offers its sincere apologies to its business partners, shareholders, and all other relevant parties for any inconvenience or concern this may cause,” the firm stated.

As previously announced, the firm has set up a special committee of outside directors to conduct an investigation—with the help of hired professionals—to look into the violations and make recommendations to ensure such activity does not reoccur.

Dentsu also said that it has requested that five company executives (two of whom have already resigned) return a portion of their compensation for their involvement in or oversight of subsidiaries implicated in the scandal. Those executives include the CEO and COO of Dentsu Japan and three executive officers in charge of the Tokyo Olympic and Paralympic Games.

Further disciplinary actions will be taken based on the results of the internal probe now under way, the company said.

The Japan Times quoted Japan’s Chief Cabinet Secretary Hirokazu Matsuno as saying the scandal is "extremely regrettable in undermining the value of sports."

The Times also reported that the government will solicit ideas from sports bodies and businesses to formulate guidelines for preventing bid-rigging in the future.