DOJ declines to pursue alleged unfair video production
business practices
Whew!
Big ad agencies are breathing a sigh of relief with the
conclusion of a major Department of Justice (DOJ) probe.
The investigation, launched in 2016, lifted the lid on suspected
video production bid rigging by the big five ad holding companies
‒ MDC, IPG, WPP, Publicis and Omnicom. The DOJ was following
up on reports that the agencies were unfairly directing production
business away from independent shops and straight into their own
in-house units. The companies were allegedly asking production
houses to bump up their prices so that contracts would be delivered
in-house.
The announcement of the investigation two years ago landed with
a loud thump amid overall industry concern about transparency and
fair play, following closely on the heels of an Association of
National Advertisers' investigation that revealed widespread
use of rebates and "other non-transparent practices"
within
