June 12 (Reuters) - The Federal Trade Commission,
reviewing ad giants Omnicom ( OMC ) and Interpublic's proposed merger,
may impose a condition that will prevent the combined company
from boycotting ads on platforms because of political content,
the New York Times reported on Thursday.
Omnicom ( OMC ) 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 restrictions the FTC is discussing are part of the Trump
administration's effort to address perceived political bias in
corporate America against conservative voices and causes, the
report said, citing two people briefed on the matter.
The U.S. regulator and the ad companies did not immediately
respond to Reuters requests for comment.
The terms of the merger review between the FTC and the two
ad companies were not finalized, the report added.
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 ( WPP )
and Publicis.
Omnicom ( OMC ) expects to close the acquisition in the second half
of the year.
The FTC 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, the Wall Street Journal reported earlier in June.
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.