The EC has said that files submitted by WPP, headed by chief executive Sir Martin Sorrell, on October 20 for clearance under the EC Merger Regulations are incomplete and it has reached the view that it requires further information to complete its review.
In a statement, the EC said that it has formally requested supplementary information to complement the original notification.
As a result, the merger review will now be delayed until WPP and Grey are in a position to provide the further information requested by the commission.
"WPP and Grey continue to cooperate fully with the commission services in this case. The commission will recommence a Phase I review period once it has received the further information requested," WPP said in a statement.
The latest move follows news earlier this month that the EC had launched an investigation, triggered by concerns that WPP's strengthened position may impede effective competition.
However, the investigation is seen as standard EU policy and one was also launched following WPP's acquisition of Young & Rubicam and later its purchase of CIA-owning Tempus.
Despite the latest deal giving WPP control of Grey's MediaCom operation in Europe, the market remains highly competitive with other major players including Starcom MediaVest, Initiative, OMD and MPG all competing against WPP's three media brands, the other two being MindShare and Mediaedge:cia.
The EC could, if it chose, impose conditions on mergers, such as the sale of assets in individual markets.
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