(Adds comments from Interpublic Group on request from JusticeDepartment)
By Tim Baysinger and Aishwarya Venugopal
NEW YORK, Dec 7 (Reuters) - Interpublic Group of Cos, one of the world's biggest advertising companies, saidon Wednesday that the U.S. Justice Department had asked one ofits standalone domestic agencies for documents regarding videoproduction practices.
It disclosed the request a day after the Wall Street Journalreported that the Justice Department's Antitrust Division wasexamining whether advertising agencies rigged bids to favorin-house production units, citing people familiar with thematter. (http://on.wsj.com/2h1OMbV).
That story did not identify which advertising firms werebeing scrutinized in the investigation, which it said has beenunder way for the past few months.
"We can confirm that one of our standalone domestic agencieshas been contacted by the Department of Justice AntitrustDivision for documents regarding video production practices andis cooperating with the government," Interpublic said in astatement.
Justice Department officials could not immediately bereached for comment.
A spokesman for WPP Plc, the world's biggestadvertising firm, declined to say if the firm had been contactedby the Justice Department. Representatives with Omnicom GroupInc, and Publicis Group SA could notimmediately be reached.
The Wall Street Journal report said the government isinvestigating whether agencies compelled independent productioncompanies to inflate their prices to make it easier for theirown in-house units to be awarded those contracts.
They are trying to determine whether the company violatedfederal antitrust laws that prohibit bid rigging and pricefixing, the newspaper reported.
Interpublic's statement said its code of conduct requires itact in the best interests of clients. "In the case ofproduction, that means requiring triple bids on all projectsabove a minimal dollar threshold," it said.
Interpublic's shares were up 0.6 percent at $23.40 in middaytrade.
Large advertising companies have ramped up their ownproduction efforts in recent years as a way to grow new revenuestreams and keep up with advertisers' increasing demand forvideo content.
(Reporting by Aishwarya Venugopal in Bengaluru and TimBaysinger in New York; Additional reporting by Joel Schectman inWashington)
WPP (WPP)
