US FTC may bar post-merger Omnicom, Interpublic from boycotting political ads, source says

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(Reuters) -The U.S. Federal Trade Commission, reviewing a proposed merger by leading advertising companies Omnicom and Interpublic, may impose a condition that will prevent the combined company from boycotting ads on platforms because of political content, a source familiar with the matter said on Thursday.

Omnicom struck a $13.25 billion all-stock deal in December last year to buy rival Interpublic Group, thus creating the world’s largest advertising agency.

The terms of the merger review have not been finalized, the source said. The FTC, along with the Federal Communications Commission, has spearheaded the Trump administration’s efforts to address perceived political bias in corporate America against conservatives.

The ad companies did not immediately respond to Reuters requests for comment. The New York Times earlier reported the potential settlement. 

The combined company would have revenue of more than $25 billion, based on 2023 figures. It would compete with some of the world’s largest advertising groups, including WPP and Publicis.

Omnicom expects to close the acquisition in the second half of the year.

The FTC has sought information from some of the world’s top ad firms as part of a probe into whether advertising and advocacy groups violated antitrust laws by coordinating boycotts of certain sites.

In 2024, FTC Chairman Andrew Ferguson said group boycotts by advertisers can be illegal because they involve coordinated refusals to do business, which may restrict competition.

Ad spending on X had slumped for months after billionaire Elon Musk bought the platform in October 2022, as some advertisers were wary of buying ads on the platform amid concerns that their brands would appear next to harmful content or false claims.

(Reporting by Jody Godoy in New York and Jaspreet Singh in Bengaluru; Editing by Alan Barona and David Gregorio)