A PYMNTS Company

US Court Upholds FTC Decision to Block IQVIA’s Acquisition of DeepIntent

 |  January 3, 2024
A US court has upheld the Federal Trade Commission’s (FTC) order to prevent the acquisition of DeepIntent, a healthcare advertising firm, by IQVIA, a U.S.-headquartered healthcare data and analytics company. The ruling came on Friday, as District Judge Edgar Ramos granted the FTC a preliminary injunction to block the proposed merger.

DeepIntent, owned by Propel Media, entered into an agreement with IQVIA in 2022, aiming to enhance communication between patients and healthcare providers. However, the FTC intervened earlier this year, expressing concerns that the merger would result in increased concentration in healthcare programmatic advertising, ultimately harming competition.

The regulatory body argued that the merger would not only stifle competition but also lead to higher prices for consumers, negatively impacting patients. DeepIntent’s chief executive officer had previously stated, in an open letter, that the company would walk away from the deal and continue as an independent entity if the regulatory intervention succeeded. The financial terms of the deal remain undisclosed.

Related: FTC Focuses Probe Of Health Data Giant, IQVIA, On Pharma Ads

In his ruling, Judge Ramos asserted, “The FTC has shown that there is a reasonable probability that the proposed acquisition will substantially impair competition in the relevant market and that the equities weigh in favor of injunctive relief.”

IQVIA expressed disappointment with the court’s decision in an emailed statement to Reuters, highlighting that it is reviewing the decision and evaluating its options. The company maintained that the arguments presented by the FTC are inconsistent with the reality of the marketplace and unsupported by the law.

Source: Reuters