Omnicom and IPG deal faces congressional scrutiny over alleged ties to GARM

New Delhi: The proposed merger between advertising giants Omnicom and Interpublic Group (IPG) has attracted the attention of the US House Judiciary Committee, led by Representative Jim Jordan, over concerns related to their involvement with the Global Alliance for Responsible Media (GARM).

The deal, which would create one of the largest advertising conglomerates in the world, has been under review since its announcement. 

The House Judiciary Committee is probing into the companies' past affiliations with GARM, an initiative once associated with the World Federation of Advertisers (WFA) aimed at creating brand safety standards for online content. 

GARM was disbanded following a lawsuit by X owner Elon Musk, who accused its members of orchestrating boycotts against the platform, thereby impacting its advertising revenue.

According to recent reports, the committee's investigation focuses on whether these ties could lead to anti-competitive practices or the suppression of conservative voices in media. 

The committee has ordered both companies to preserve related documents and provide information on their connections with GARM, including measures taken to ensure no repeat of alleged anti-conservative biases in their practices.

While neither Omnicom nor IPG has officially responded to these allegations, the scrutiny could potentially delay or even jeopardise the merger if significant issues are uncovered. 

This story continues to develop as both companies await further instructions from the committee, with a deadline set for January 7 to respond to the inquiry.