Texas AG Opens Possible Conspiracy Investigation Into Ad Boycott Of Certain Social Media Platforms

Texas Attorney General Ken Paxton has issued a civil investigative demand to the World Federation of Advertisers (WFA) as part of an ongoing investigation into alleged anticompetitive practices.

The investigation focuses on whether the WFA and its sub-organization, the Global Alliance for Responsible Media (GARM), coordinated to pressure advertisers to withhold spending on certain social media platforms.

The civil investigative demand seeks documents and information regarding the WFA and GARM’s activities in organizing their members to potentially boycott platforms that do not adhere to their “Brand Safety Standards.”

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Paxton’s office is examining whether these actions constitute a conspiracy to harm competition, a potential violation of the Texas Free Enterprise and Antitrust Act of 1983.

BREAKING:

I have opened an investigation into a possible conspiracy by advertising companies to boycott certain social media platforms.

It is completely unacceptable and un-American that the Department of Justice under the Biden Administration failed to enforce antitrust laws… https://t.co/vZQkQDTw84

— Attorney General Ken Paxton (@KenPaxtonTX) November 21, 2024

Although individual companies have the freedom to decide where to allocate their advertising budgets, coordinated efforts to exclude specific platforms could harm competition in the digital advertising market, according to Paxton’s office.

Attorney General Paxton criticized what he described as a lack of enforcement by federal authorities under the Biden-Harris administration and emphasized the importance of holding organizations accountable for potential violations of antitrust laws.

“It is completely unacceptable and un-American that the Department of Justice under the Biden-Harris Administration failed to enforce antitrust laws against its perceived political allies,” Paxton stated. “Trade organizations and companies cannot collude to block advertising revenue from entities they wish to undermine. Today’s document request is part of an ongoing investigation to hold WFA and its members accountable for any attempt to rig the system to harm organizations they might disagree with.”

The WFA represents global advertisers and works to set industry standards and guidelines. Its sub-organization, GARM, focuses on promoting “brand safety” by ensuring that advertising aligns with specific ethical and content standards.

Critics, however, argue that such initiatives can be weaponized to exclude platforms based on political or ideological disagreements.

The investigation will probe whether these organizations coordinated efforts to pressure advertisers into avoiding certain social media platforms, thereby limiting competition and potentially infringing on antitrust laws.

This investigation comes amid increasing scrutiny of Big Tech and the digital advertising ecosystem. State and federal regulators have raised concerns about monopolistic practices and coordinated actions that stifle competition.

Paxton’s focus on the WFA and GARM highlights the broader tensions between industry standards for responsible advertising and the need to ensure a competitive market.

The civil investigative demand is part of a larger effort by Paxton’s office to uphold the principles of the Texas Free Enterprise and Antitrust Act, ensuring that no organization uses its influence to unfairly harm competitors.

The WFA has not yet publicly responded to the civil investigative demand. Paxton’s office will review the requested documents and information to determine whether legal action is warranted.

The investigation is ongoing, and further developments are expected as the Attorney General’s office continues to gather evidence.

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