TOKYO: Japan’s Fair Trade Commission filed a criminal complaint against advertising agency Dentsu Group Inc. and five other companies Tuesday over alleged bid-rigging linked to the Tokyo Olympic and Paralympic Games in 2021.

The targets of the measure also included Yasuo Mori, 56, a former senior official of the Tokyo Games organizing committee, Koji Henmi, 55, former assistant head of the sports department of Dentsu Inc., a Dentsu Group unit, and five other people.

The antitrust watchdog took action in a bid-rigging case led by the advertising industry for the first time.

The six companies and seven people were allegedly involved in bid-rigging for contracts related to Tokyo Games venue management.

Related orders received by the six companies in question, also including Hakuhodo Inc., are believed to have totaled 43.7 billion yen.

The Tokyo District Public Prosecutors Office is expected to indict the six companies as well as Mori, Henmi and others for violating the antimonopoly law later Tuesday.

Besides Dentsu Group and Hakuhodo, ad company Tokyu Agency Inc. as well as event businesses Cerespo Co., Fuji Creative Corp. and Same Two Inc. were slapped with the criminal complaint.

Also named in the complaint were Cerespo executive Yoshiji Kamata, 59, Fuji Creative Executive Vice President Masahiko Fujino, 63, Hakuhodo DY Sports Marketing Inc. President Kenichiro Yokomizo, 55, Tokyu Agency board director Mitsuo Yasuda, 60, and Same Two leader Masao Umino, 56.

Mori, Henmi, Kamata and Fujino have already been arrested on suspicion of violating the antitrust law.

Ad agency ADK Marketing Solutions Inc. escaped the criminal complaint under a leniency scheme for companies that voluntarily report their anticompetitive practices before an investigation by the FTC.

According to the FTC complaint, the seven people allegedly colluded between February and July 2018 to predetermine among the six companies plus ADK Marketing the winners of contracts for planning Games-related test events and managing venues during actual competitions, agreeing that only one company would place a bid for each contract.

Mori has admitted to the wrongdoing, saying, “We couldn’t allow ourselves to let any failure affect the Games,” informed source said.

Henmi has also admitted to his allegations, while Kamata and Fujino have not, claiming that they do not think their practices were bid-rigging.

“If there were malpractices, it would be very regrettable,” Chief Cabinet Secretary Hirokazu Matsuno told a news conference, adding that such practices would “damage the values of sports greatly.”

JIJI Press