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Texas AG Investigates Alleged Ad Industry Boycott of Elon Musk's X

Ken Paxton's probe targets the World Federation of Advertisers and its now-defunct GARM group over claims of antitrust violations and coordinated ad boycotts.

  • Texas Attorney General Ken Paxton has launched an investigation into the World Federation of Advertisers (WFA) and its former initiative, the Global Alliance for Responsible Media (GARM), over allegations of collusion to boycott certain social media platforms, including Elon Musk's X.
  • The investigation follows an antitrust lawsuit filed by X and Rumble in August, accusing WFA and GARM of pressuring advertisers to collectively withhold ad spending from platforms that did not comply with GARM's 'Brand Safety Standards.'
  • X claims the alleged boycott cost the platform billions of dollars in lost advertising revenue, with major brands like Apple and Disney reducing ad spend after concerns over hate speech and content moderation on X.
  • GARM, which was dissolved in August, was originally established to promote responsible advertising but has faced criticism for allegedly using its standards to suppress free speech and disadvantage alternative platforms.
  • Paxton's investigation seeks documents and evidence to determine whether GARM and WFA violated antitrust laws, with potential implications for the advertising industry's influence on online discourse and market competition.
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