America’s competition watchdog, the Federal Trade Commission (FTC), has cleared Publicis Groupe’s $2.2 billion (A$3.14 billion) acquisition of LiveRamp but with caveats.
Publicis must provide “neutral and nondiscriminatory access” to LiveRamp’s products over the next five years in an effort to preserve competition in the digital advertising ecosystem.
This means Publicis must install firewalls to prevent it from accessing LiveRamp’s customer data, but allows the holding company to clear a major hurdle to getting the deal done.
“By requiring LiveRamp to continue operating as it does today as a neutral platform, this order will ensure that Publicis does not gain an unfair advantage over its competitors in the digital advertising marketplace,” said David Shaw, principal deputy director of the FTC’s Bureau of Competition.
“The FTC’s action today ensures that the digital advertising marketplace can continue to grow and evolve without risking harm to competition.”
The FTC had been concerned that Publicis Groupe could use LiverRamp’s customer data to incentivise clients to switch their media agency accounts across to the holding company and decreasing competition in the market.
The FTC also alleged Publicis would deny or degrade access to LiveRamp services on which competitors rely, which would lead to higher costs and lower quality services for customers of competing digital advertising services.
Publicis Groupe said that it was pleased to reach an agreement with the FTC.
In a press statement, it said: “From the outset, we have recognised the significance of this acquisition for clients and the industry. LiveRamp’s neutrality and independence have always been fundamental to its model, and both companies have taken proactive steps to preserve these principles across the entire ecosystem, now and for the future.”
Publicis Groupe is expected to close the acquisition of LiveRamp by the end of the year.
