WPP Subpoenaed By Justice Department in Ad Probe -- Update
December 19 2016 - 11:39AM
Dow Jones News
By Suzanne Vranica and Olga Cotaga
WPP PLC is the latest advertising holding company to disclose
that it has been contacted by the U.S. Department of Justice in its
investigation of possible price fixing in video-advertising
production.
WPP, the world's largest ad company by revenue, on Monday said
three of its subsidiaries have received subpoenas form the Justice
Department's antitrust division relating to its probe of video
production and postproduction practices in the ad industry.
Last week, French advertising giant Publicis Groupe SA and
Omnicom Group Inc. of the U.S. each acknowledged that subsidiaries
had received subpoenas. Interpublic Group also recently disclosed
that it was contacted by the Justice Department's antitrust
division "for documents regarding video production practices."
All of the companies said they are cooperating with the
investigation.
The Wall Street Journal earlier this month reported that the
Justice Department was investigating whether ad agencies
inappropriately steered contracts for making commercials to their
in-house production units, disadvantaging independent
companies.
WPP declined to say which units were involved. The company owns
many ad agencies, including J. Walter Thompson, Young & Rubicam
and Ogilvy & Mather.
The production and postproduction work on commercials is a
roughly $5 billion business in the U.S. and involves services such
as directing, sound editing, special effects and color correcting.
The sector includes hundreds of small independent companies that
often compete for contracts.
Write to Suzanne Vranica at suzanne.vranica@wsj.com and Olga
Cotaga at Olga.Cotaga@wsj.com
(END) Dow Jones Newswires
December 19, 2016 11:24 ET (16:24 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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