Shona Ghosh
Dec 20, 2016

WPP drawn into US Department of Justice investigation

Network 'fully co-operating with enquiries'

WPP drawn into US Department of Justice investigation
WPP has confirmed that three of its subsidiaries have been subpoenaed by the US Department of Justice, as part of the latter's investigation into production practices.
 
In a statement, WPP said it was "fully co-operating with enquiries".
 
WPP, whose advertising networks include Y&R, Ogilvy & Mather and Grey, is the fourth holding company to be approached by the DoJ.
 
Interpublic Group was the first to issue a statement, saying the DoJ had been in touch with one of its US domestic agencies.
 
On Friday Omnicom confirmed two of its agencies had been subpoenaed. Publicis issued a follow-up statement hours later saying three of its agencies were also involved.
 
In early December The Wall Street Journal was first to report the DoJ was investigating agencies over alleged pressure on smaller production houses, in violation of US antitrust laws.
 
The investigation follows independent production companies alleging they were pressured to boost their prices to make them appear less attractive to advertisers, meaning ad agencies won contracts to create spots in-house instead. Production companies were allegedly promised favourable treatment in the future in return.
 
WPP's full statement: "WPP confirms that, similarly to Interpublic, Omnicom and Publicis, three of its subsidiaries have received subpoenas from the US Department of Justice Antitrust Division concerning the division’s ongoing investigation of video production and post-production practices in the advertising industry.
 
"WPP and its subsidiaries are fully cooperating with the enquiries."
 
(This article first appeared on CampaignLive.co.uk)

 

Source:
Campaign India

Follow us

Top news, insights and analysis every weekday

Sign up for Campaign Bulletins

Related Articles

Just Published

Premium
Sorrell denies 'slapping' Superunion's Prior over Campaign interview
Premium
5 hours ago

Sorrell denies 'slapping' Superunion's Prior over ...

Former WPP chief was angry that ex-colleague called S4 Capital 'speck in rear-view mirror'.

Premium
Sony embraces the absurd in sci-fi spot for PlayStation VR
Premium
1 day ago

Sony embraces the absurd in sci-fi spot for ...

Ad marks Adam & Eve/DDB's fourth work for brand.

Premium
Watch these cat videos right meow
Premium
1 day ago

Watch these cat videos right meow

Cat-food brand Meow Mix revives a 1970s earworm with a series of splendid remixes—along with backstories for the fabulous feline artists.

Premium
How about adding some tears to your Christmas cooking?
Premium
1 day ago

How about adding some tears to your Christmas cooking?

Alaska Milk and MullenLowe mercilessly pull heartstrings in the Philippines with a story about dementia.