Dentsu has been fined by Japan's competition regulator, the Fair Trade Commission, for bid-rigging over the 2020 Tokyo Olympics and Paralympics.
The advertising group and six other ad agencies and event organisers face a combined total of 3.3 billion yen (AUD35 million) in penalties.
The commission alleges bids were rigged in April 2018 on planning test events for the Olympics and Paralympics.
Dentsu said it had received a payment order under the Antimonopoly Act from the Japan Fair Trade Commission.
And its subsidiary Dentsu Inc received both a cease and desist order and a surcharge payment order under the same act.
An internal review two years ago found Dentsu’s culture of winning at any cost was at least partly to blame for the group facing criminal action for Olympic contract bid rigging.
The investigation found that widespread thinking that results justify everything was a factor behind Dentsu, and an employee, being indicted for alleged corruption.
In the latest statement, Dentsu Group Inc said it “fully cooperated” with an investigation by authorities in November 2022, regarding suspected violations of the Antimonopoly Act.
“We acknowledge the legal violations in relation to the planning and related operations for the test events, and have taken this matter seriously," company said.
“Both companies … reflected deeply and implemented measures to prevent recurrence, including efforts to evolve its organisational culture to prioritise integrity.”
The Fair Trade Commission’s orders also identify violations in the implementation and related operations of the test events, and the management and operation of the main event
However, the company says these versions “significantly differ from our understanding” of the facts.
“These discrepancies cannot be overlooked,” Dentsu said.
“Therefore, the company decided to file a lawsuit today to seek revocation of the administrative orders and to sincerely present our position in court, aiming for a fair judicial determination.
“The company expects that the impact of this matter on its consolidated financial result forecast for the current fiscal year will be minimal.”
Dentsu Group Inc. has been fined 495.56 million yen (AUD5.27 million) and Dentsu Inc 425.15 million yen (AUD4.5 million).
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