JFTC to Fine 6 Firms Over Tokyo Games Bid Rigging; Dentsu Among Those Facing Administrative Penalty

The Yomiuri Shimbun

17:36 JST, April 4, 2025

In a bid-rigging case related to the Tokyo Olympics and Paralympics held in 2021, the Japan Fair Trade Commission (JFTC) plans to recognize that seven companies, including advertising giant Dentsu Group Inc., violated the Antimonopoly Law that prohibits “unreasonable restraint of trade.” It plans to order six of them to pay administrative fines totaling ¥3 billion.

Each of these companies is expected to be ordered to take measures to prevent the recurrence of such violations.

In addition to Dentsu, the companies are three major advertising agencies (Hakuhodo Inc., Tokyu Agency Inc., and ADK Holdings Inc.), two event planning companies (Cerespo Co. and Same Two Inc.) and TV production company Fuji Creative Corp. All are based in Tokyo.

As part of administrative procedures, the JFTC has conducted investigations into the case to take administrative actions such as issuing cease-and-desist orders and imposing fines.

According to sources, the seven companies are alleged to have decided in advance, in April 2018 or later, which companies would receive contracts from the organizing committee for the planning and management of test events and the operation of events at the Games.

From May to August 2018, 26 bids for contracts for planning test events were held and a total of nine companies, including the seven companies in question, won these bids for a total of about ¥500 million. The nine companies also concluded contracts with the committee to run test events as well as events during the Games, with the total contract value reaching ¥43.7 billion.

Of the six companies, all but ADK are facing criminal charges from the JFTC. Four companies including Dentsu and Hakuhodo have been found guilty by the Tokyo District Court, and all four have appealed to a higher court. Trials for Same Two and Fuji Creative Corp. are ongoing at the district court.

As for ADK, no charges have been filed against the advertising agency as it voluntarily reported the violations to the JFTC under the leniency system. As a result of the latest investigations by the JFTC, the company will be recognized as having violated the law and will be given a cease-and-desist order. However, no fine is expected to be imposed on the company due to its voluntary reporting.

The JFTC has already sent its penalty plans to the seven companies and reportedly plans to issue orders after hearing their opinions.