Attorney General Ken Paxton has initiated an investigation into the World Federation of Advertisers (WFA) regarding a potential anticompetitive scheme. The focus is on whether there is a coordinated effort to withhold advertising dollars from specific social media platforms.
The investigation seeks to determine if there is a conspiracy to pressure advertisers against purchasing online advertising space on certain platforms. While companies have the right to decide their advertising strategies, such coordination could harm competition and potentially breach the Texas Free Enterprise and Antitrust Act of 1983.
A civil investigative demand has been sent, requesting documents and information from WFA and its sub-organization, the Global Alliance for Responsible Media (GARM). This inquiry examines whether they are organizing members to boycott social media platforms that do not meet their "Brand Safety Standards."
Attorney General Paxton stated, “It is completely unacceptable and un-American that the Department of Justice under the Biden Administration failed to enforce antitrust laws against its perceived political allies.” He emphasized that "trade organizations and companies cannot collude to block advertising revenue from entities they wish to undermine." The document request forms part of an ongoing investigation aimed at holding WFA and its members accountable for any attempts to manipulate the system against disagreeable organizations.