FTC approves Omnicom’s $13.5bn acquisition of Interpublic on condition

The U.S. Federal Trade Commission, FTC, has approved Omnicom’s $13.5bn acquisition of rival Interpublic on the condition the new company does not enter agreements with others to steer ad dollars towards or away from publishers based on political content.

The FTC’s approval has thus far transformed Omnicom as the world’s largest advertising agency.

However, the agreement with the agency would still allow individual advertisers to specify where their ads are shown, according to the FTC.

Also Read:Omnicom powers through $3.7 billion quarter as It gears up for historic IPG merger

However, the recent agreement, according to a report from The Guardian UK, would require the company to hand over related documents and file annual compliance reports for five years.

It would also settle potential claims from the FTC’s nascent investigation into possible coordination with media watchdogs who have been accused by Elon Musk of helping orchestrate advertiser boycotts of the social media platform X.

Also Read:Dentsu Nigeria powers advertising career mentorship program for students in public secondary schools

Commenting, Andrew Ferguson, the FTC chairman, noted that the settlement does not limit either advertisers’ or marketing companies’ constitutionally protected right to free speech.

Also Read:Adobe appoints Omnicom global agency for digital experience marketing

In the meantime, Ferguson, who previously criticized settlements that require companies to change their behaviour rather than spin off assets, said, “The history of collusion in the market for media-buying services, and the increased potential for collusion post-merger, make this a rare instance where the imposition of a behavioral remedy is appropriate.”

It would be recalled that Omnicom entered the all-stock deal to buy Interpublic in December last year, creating the world’s largest advertising agency. In the US, the firm would become the largest media buying ad agency.