FTC Greenlights $13.5B Ad Merger with Clause Benefiting Elon Musk's X
The FTC's proposed consent order, released Monday, bars the merged company from directing or restricting advertising spending based on a platform's political or ideological leanings. This decision comes as a direct response to concerns voiced by congressional Republicans and tech magnate Elon Musk, whose platform X (formerly Twitter) has faced a mass advertiser exodus due to controversial content.
The order stipulates that Omnicom cannot refuse to work with advertisers based on political perspectives or steer clients' ads away from certain platforms for the same reason — unless explicitly requested by the advertiser. This means platforms like X, which saw advertisers flee in 2023 after ads appeared alongside pro-Nazi content, would be protected from automatic exclusion.
'This decree goes to great lengths to avoid interfering with the free, regular course of business between marketing firms and their customers,' said FTC Republican Chair Andrew Ferguson. 'Omnicom-IPG may choose with whom it does business and follow any lawful instruction from its customers as to where and how to advertise. No one will be forced to have their brand or their ads appear in venues and among content they do not wish.'
The consent order includes language prohibiting Omnicom from maintaining policies that "decline to deal with Advertisers based on political or ideological viewpoints" or "direct Advertisers' advertising spend based on the Media Publisher's political or ideological viewpoints."
The merger drew additional scrutiny due to its potential to reduce competition in the media buying industry. The FTC's complaint warns that with fewer major players, the risk of coordination and mutual reinforcement among remaining firms could increase — potentially echoing the role of the now-defunct Global Alliance for Responsible Media (GARM), which helped advertisers avoid 'non-brand-safe' content before dissolving under legal and financial pressure.
GARM's work had previously drawn ire from Musk, who labeled advertiser pullback from X an 'illegal boycott.' The FTC is currently investigating Media Matters, a media watchdog group Musk blames for encouraging brands to leave his platform. Media Matters filed a countersuit earlier Monday.
Despite constitutional protections for boycotts, the FTC argues this new rule does not interfere with advertisers' First Amendment rights. The consent decree applies solely to Omnicom's own internal policies, not those of its clients.
Philippe Krakowsky, CEO of Interpublic, called the move a 'notable step forward' for the merger, while Omnicom CEO John Wren expressed confidence that the deal would close in the second half of 2025.
The proposal was approved by Chair Ferguson and Commissioner Melissa Holyoak. Commissioner Mark Meador recused himself. The FTC is currently operating under a Republican majority, after President Donald Trump dismissed the two Democratic commissioners and has yet to appoint replacements.
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