• by Wendy Davis  @wendyndavis, Joe Mandese  @mp_joemandese, July 11, 2024

The ad industry's Global Alliance for Responsible Media (GARM) likely violated U.S. antitrust laws by orchestrating an initiative to avoid placing ads in media outlets carrying "disfavored" content, concludes a staff report released Wednesday by the Republican-led House Judiciary Committee.

The report, “GARM's Harm: How the World's Biggest Brands Seek to Control Online Speech,” accuses GARM of coordinating action by corporations, ad agencies and other industry groups in order to “demonetize platforms, podcasts, news outlets, and other content deemed disfavored by GARM and its members.”

The staff report specifically accuses the group of colluding to cut ad revenue to X (formerly Twitter), attempting to “silence disfavored voices” like podcast host Joe Rogan, and attacking “disfavored” right-wing news sites. 

“The extent to which GARM has organized its trade association and coordinates actions that rob consumers of choices is likely illegal under the antitrust laws and threatens fundamental American freedoms,” the report states.

House Judiciary Committee chair Jim Jordan (R-Ohio) -- who has repeatedly accused tech companies, Democrats and others of collaborating to suppress conservative voices online -- added Wednesday in a tweet that GARM's strategy is “a coordinated boycott against conservative outlets.”

Established in 2019 by the World Federation of Advertisers, GARM members include large brand advertisers and trade associations, including the U.S.'s Association of National Advertisers, American Association of Advertising Agencies and Interactive Advertising Bureau, as well as big agencies such as Dentsu, GroupM, Havas Media, IPG, Omnicom Media Group and Publicis Media.

At launch the group stated that members “will work collaboratively to identify actions that will better protect consumers online, working toward a media environment where hate speech, bullying and disinformation is challenged, where personal data is protected, and used responsibly when given, and where everyone is, especially children, better protected online.”

The committee's staff report provides several examples of supposed collusion by GARM. Among others, the report accuses GARM members of scheming to cut X's ad revenue after its October 2022 acquisition by Elon Musk. X, ironically, rejoined GARM last week, stating it is "is committed to the safety of our global town square and proud to be part of the GARM community.”

According to the report, the Danish energy company Ørsted contacted GARM in November 2022 to inquire about a potential boycott of X. The following April, an employee of Ørsted said in an email to the World Federation of Advertisers and others, including GARM leader Rob Rakowitz: “Based on your recommendations, we have stopped all paid advertisement” on X.

Rakowitz emailed a response denying that GARM or the World Federation of Advertisers had recommended that Ørsted stop advertising, according to the report. Rakowitz also denied to the House committee that he had recommended that Ørsted stop advertising on Twitter.

Rakowitz and GARM have not yet responded to MediaPost's request for comment on the staff report.

Outside watchdogs have separately raised brand-safety concerns about X, which has reportedly lost significant ad revenue since its acquisition by Musk. 

Media Matters for America, for instance, reported last year that ads for brands including Apple, Bravo, IBM and Oracle were being placed next to pro-Nazi posts on the platform. (X responded that the ad placements highlighted in Media Matters' report were “inorganic” and rare.)

The Center for Countering Digital Hate also reported last year that the company was allowing racist, homophobic and antisemitic comments posted by Twitter Blue subscribers to remain online. X argued in a recent court case that it lost “tens of millions” in ad revenue as a result of that report.