Omnicom-IPG Deal Draws Congressional Scrutiny

On 9 December, Omnicom revealed its acquisition of Interpublic Group (IPG). However, just ten days later, the merger came under Congressional scrutiny. Representative Jim Jordan, a Republican from Ohio, has initiated a probe into the two advertising giants’ ties to organisations he claims oppose conservative values.

Both Omnicom and IPG are based in the United States and the news of their merger has sent shockwaves through the advertising industry. The deal, valued at approximately $30 billion, positions the combined entity to handle $65 billion in global media billings, potentially reshaping the global advertising landscape.

According to The New York Post, on Wednesday, Jordan, who serves as Chair of the House Judiciary Committee sent letters to the CEOs of Omnicom and IPG. Both companies were founding members of the World Federation of Advertisers (WFA) and the recently disbanded Global Alliance for Responsible Media (GARM). This inquiry is part of a broader antitrust investigation spearheaded by Jordan’s committee.

In the letters, Representative Jim Jordan directed Omnicom and Interpublic Group (IPG) to preserve all documents and communications related to their interactions with the World Federation of Advertisers (WFA) and the Global Alliance for Responsible Media (GARM) and submit them to the committee for review.

The House Judiciary Committee is examining whether the proposed merger between Omnicom and IPG could harm competition, particularly concerning conservative media outlets.

Reports indicate that GARM has accused right-leaning platforms of spreading what it termed 'harmful content', allegedly pressuring advertisers to withhold revenue from these outlets. GARM reportedly lobbied over 40 major companies including Adidas, American Express, Bayer, BP, Carhartt, Chanel, CVS and General Motors - to shift ad spending away from conservative media.

The organisation allegedly targeted platforms such as The New York Post and Fox News, both owned by News Corp., urging advertisers to redirect their budgets elsewhere.

The committee has requested that both companies respond to its inquiries by 7 January 2025.