Congress: It’s not illegal to boycott X
In the House committee's report, lawmakers clarified that each advertiser "could legally choose to independently withhold advertising from any platform or news outlet it chooses."
However, a single brand boycotting X wouldn't have the impact that GARM allegedly sought, Congress claimed. "What these corporations could not achieve unilaterally" to "silence conservative views," they "have worked extensively since 2019 to achieve by coordinating through GARM," the report alleged.
Even if GARM has "good intentions" in advising brands to hold off on X advertising, "federal antitrust laws do not diminish," lawmakers claimed.
If antitrust law doesn't apply in this case, legal reforms may be necessary to intervene between GARM and online platforms, Congress wrote, alleging that "GARM has no intention of limiting its censorship to existing technologies."
Lawmakers' biggest fear is that GARM's alleged overreach will be amplified by applying its strict monetization standards through "technologies in their infancy such as generative AI and the metaverse."
"GARM’s partners are developing AI tools that will integrate GARM’s standards seamlessly across social media platforms," the committee's report warned. "Such an automated censorship effort could result in the demonetization of any views or voices that GARM’s advertising cartel dislikes, potentially without any human involvement at all. Such concentrated market power is dangerous, and the implications of AI technology on advertising censorship are frightening."...
The Committee on the Judiciary reported that GARM may be violating the Sherman Act, which "makes unreasonable restraints of trade illegal," including certain cases when "group boycotts and coordinated actions" harm consumers....
GARM allegedly harmed consumers by wielding its "tremendous market power in the advertising industry" and "eliminating a variety of content and viewpoints available to consumers." This allegedly worked to "rob consumers of choices" and "is likely illegal under the antitrust laws," in addition to threatening "fundamental American freedoms," the committee's report said.
In the transcript of GARM co-founder Rob Rakowitz's testimony to the House committee reviewed by Ars, Rakowitz said GARM "brings together marketers, agencies, platforms, and industry groups to remove advertising support from harmful content in digital social media" and has "strict processes in place to ensure that we comply with relevant antitrust laws."
"Our goal is to create more transparency and competitiveness in the marketplace by developing voluntary industry standards through an inclusive and open process," Rakowitz said. "GARM is apolitical in its work and our membership approach is nondiscriminatory. We are not a watchdog. We are not a lobby. We do not boycott, and we do not collude."