FTC may block post-merger Omnicom, Interpublic from boycotting political ads: report

The U.S. Federal Trade Commission, as it is reviewing a merger between rival advertising companies Omnicom and Interpublic, may prevent the combined company from boycotting political ads, according to a news report.

In December, Omnicom struck a $13.25 billion all-stock deal to buy its competitor, Interpublic Group, which would create the world's largest advertising agency, Reuters reported.

A source familiar with the matter told the wire service on Thursday that the FTC is reviewing the deal and no agreement has been finalized.

Omnicom expects to close the deal later this year.

As part of an investigation, the FTC has sought information from some of the world's top ad firms into whether antitrust laws are violated by advertising and advocacy groups when they coordinate boycotts of certain websites.

FTC Chairman Andrew Ferguson has said that advertisers who conduct group boycotts could be violating the law because they involve coordinated refusals to do business, which may restrict competition.

The ad boycotts issue comes as ad spending on X has dropped for months after Telsa CEO Elon Musk bought the social media platform in October 2022, because some advertisers have been wary of buying ads on the site over concerns that their brands would appear next to harmful content or false claims.