The legal fallout from the Tokyo 2020 Olympic corruption scandal reached its conclusion on December 9, 2025, as the Supreme Court of Japan dismissed the final appeal of Dentsu Group Inc. The advertising giant was convicted of violating the Antimonopoly Act for orchestrating a bid-rigging cartel that controlled the awarding of lucrative contracts for the Games.
Prosecutors demonstrated that Dentsu, working with other agencies and seconded employees within the Tokyo Organizing Committee, effectively privatized the public tendering process. Dentsu’s defense relied on a technical argument regarding the segmentation of contracts. They admitted to irregularities in the planning of "test events" (rehearsals) but argued this conspiracy did not extend to the actual operation of the Olympic Games, claiming these were separate commercial phases.
The Supreme Court rejected this bifurcation, upholding the "unitary conspiracy" theory established by the lower courts. The judges ruled that the rigging of the initial planning contracts was the strategic gateway to securing the downstream operational contracts. Therefore, the conspiracy to rig the planning phase was inextricably linked to the implementation phase.
The finalized sentence includes a fine of 300 million yen (approximately $2 million USD) for Dentsu and a suspended prison sentence for a former executive. While the fine is financially absorbable for the corporation, the conviction carries severe collateral consequences, including potential debarment from future government contracts and reputational damage. Dentsu has responded by pledging a complete overhaul of its corporate governance to restore public trust, acknowledging the severity of the "Iron Triangle" corruption that marred the international event.
Source: Japan Times