Omnicom’s $13.5bn acquisition of rival Interpublic can move forward 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 US Federal Trade Commission said on Monday.
The agreement with the agency would still allow individual advertisers to specify where their ads are shown, the FTC said. 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.
“Today’s settlement does not limit either advertisers’ or marketing companies’ constitutionally protected right to free speech,” said Andrew Ferguson, the FTC chairman.
Spokespeople for the companies did not immediately respond to requests for comment.
Omnicom entered the all-stock deal to buy Interpublic in December, creating the world’s largest advertising agency. In the US, the firm would become the largest media buying ad agency, the FTC said.
Ferguson had previously criticized settlements that require companies to change their behavior, rather than spin off assets, calling them difficult to enforce.
“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,” he said.
Monday’s agreement would require the company to hand over related documents and file annual compliance reports for five years.
The settlement requires final approval from the FTC, which is led by three Republican commissioners, after a public comment period. Two of the commissioners voted to enter the proposed settlement on Monday and one was recused.