FTC in talks over ad‑boycott probe

The FTC is reportedly in settlement talks with major advertising companies over an investigation into alleged coordination of boycotts against platforms including X. (thestar.com.my) Industry outlets say the agency is close to settlements with media and trade groups it has been probing. (adage.com)

The Federal Trade Commission is negotiating settlements with advertising and media groups in an antitrust probe over alleged coordinated boycotts of platforms including X. (adage.com) An agency lawyer told a federal appeals court on Monday, April 13, that the Federal Trade Commission was in settlement talks and would update the court if the commission took action. The Wall Street Journal separately reported on April 13 that talks involved several major advertising companies. (adage.com, finance.yahoo.com) The probe centers on whether advertisers or trade groups used shared brand-safety rules to coordinate where ads would not run. In antitrust law, that can become a restraint-of-trade case if competitors act together instead of making independent decisions. (ftc.gov, justice.gov) The case grew out of a fight over the Global Alliance for Responsible Media, a World Federation of Advertisers initiative created in 2019 after the Christchurch mosque shootings to reduce ad placements next to harmful content. The World Federation of Advertisers said the program was voluntary and built tools for advertisers to avoid illegal or harmful material. (wfanet.org, wfanet.org) X sued the World Federation of Advertisers and several major brands in August 2024, alleging an illegal group boycott that cost the platform billions of dollars in advertising revenue. Ad Age reported at the time that the defendants included the World Federation of Advertisers and companies such as Unilever, Mars, CVS and Orsted, with Twitch also named. (adage.com) Three days later, on August 9, 2024, the World Federation of Advertisers said it would discontinue Global Alliance for Responsible Media activities. The group said the allegations had drained the initiative’s resources and finances, and said it would contest the claims in court. (wfanet.org, wfanet.org) Congressional Republicans added pressure in July 2024, when the House Judiciary Committee released a staff report alleging that Global Alliance for Responsible Media members had coordinated to demonetize disfavored platforms, podcasts and news outlets. That report reflected one side of the dispute, and the World Federation of Advertisers has said the initiative was pro-competitive and focused on brand safety. (judiciary.house.gov, wfanet.org) The settlement talks matter because the Federal Trade Commission appears to be testing how far antitrust law reaches into ad-industry coordination around content standards. If deals are finalized, the commission could impose conduct limits without first litigating the full case in court. (adage.com, bloomberg.com) No settlement terms were public as of April 14, and the Federal Trade Commission’s public case library did not show a new filed action tied to the boycott probe. For now, the clearest signal is that a fight that started with advertiser safety standards and X’s 2024 lawsuit may be heading toward negotiated limits instead of a public trial. (ftc.gov, adage.com)

Get your own daily briefing

Scout delivers personalized news, insights, and conversations tailored to your role and industry.

Download on the App Store

Shared from Scout - Be the smartest in the room.