FTC eyes restrictions on Omnicom-Interpublic merger to prevent political ad boycotts

New Delhi: The US Federal Trade Commission (FTC) is considering imposing a rare condition on the proposed $13.25 billion merger between advertising giants Omnicom Group and Interpublic Group, which could prohibit the combined company from boycotting advertisements on platforms due to their political content, according to news reports. 

The move, reported by The New York Times and Reuters, is part of the Trump administration’s broader push to curb perceived political bias in the corporate world, particularly against conservative voices.

Announced in December 2024, the all-stock deal aims to create the world’s largest advertising agency, with a combined revenue of approximately $25 billion, uniting major brands like Omnicom’s BBDO and TBWA with Interpublic’s McCann and Weber Shandwick. 

However, the merger faces intense scrutiny under the FTC’s review, with discussions centring on a proposed consent decree that would bar the merged entity from refusing to place client ads on platforms based on political affiliations or content. The terms of the review remain fluid and are not yet finalised, the source noted in the reports.

The FTC’s consideration comes amid concerns about advertiser boycotts, particularly following a slump in ad spending on X after Elon Musk’s acquisition of the platform in October 2022. Some advertisers pulled back due to fears of their brands appearing alongside controversial content. FTC Chairman Andrew Ferguson has previously stated that coordinated advertiser boycotts can violate antitrust laws by restricting competition, a stance that underpins the agency’s current approach.

The timing is notable, as the advertising industry gathers for the Cannes Lions Festival of Creativity, where the merger’s implications are likely to dominate discussions.

The merger, which received shareholder approval in March 2025, is expected to close in the second half of the year. The FTC’s potential restrictions could set a precedent for how mergers are evaluated under the current administration.