The US Federal Trade Commission has come to a settlement with WPP, Publicis and Dentsu after the watchdog accused the ad networks of violating antitrust laws and “discriminating against speech and ideas”.
The FTC accused the holding companies of “unlawfully colluding” to boycott online media platforms based on "disfavoured" political views in order to promote brand safety and target misinformation.
WPP, Publicis and Dentsu did not admit or deny wrongdoing in settlement, but have agreed to a proposed order that will stop the alleged collusion or use of exclusion lists when placing ads.
The complaint alleged the ad agencies operated through trade associations including the World Federation of Advertisers’ Global Alliance for Responsible Media (GARM), which was forced to close after facing a lawsuit from Elon Musk’s X.
The US case against GARM accused major advertisers of co-ordinating an illegal boycott. It was dismissed last month.
The FTC accused the ad agencies of using GARM and the American Association of Advertising Agencies’ Advertiser Protection Bureau to establish the brand-safety standards. Websites that included “misinformation” were deemed to fall below the brand safety floor and became ineligible for advertising revenue.
Omnicom was prohibited from co-ordinating adspend based on political or ideological content of publishers last June. The contingency was part of the FTC’s approval of Omnicom’s acquisition of IPG.
“The ad agencies’ brand-safety conspiracy turned competition in the market for ad-buying services on its head,” FTC chairman Andrew Ferguson said.
“The antitrust laws guarantee participation in a market free from conduct, such as economic boycotts, that distort the fundamental competitive pressures that promote lower prices, higher quality products and increased innovation.
“This unlawful collusion not only damaged our marketplace, but also distorted the marketplace of ideas by discriminating against speech and ideas that fell below the unlawfully agreed-upon floor.”
Ferguson claimed the agreement restored competition.
WPP called the agreement "mutually acceptable” on a no-admit-nor-deny basis. A spokesperson said it reflects its “commitment to provide our clients with unbiased advice as they decide where to place their media."
A spokesperson for Dentsu said: "Dentsu remains fully committed to operating transparently, with integrity, and in strict compliance with all applicable laws. Our dedication to delivering value and maintaining the highest standards of compliance is unchanged."
Publicis did not respond to a request for comment.
