News Corp CEO Robert Thomson demands ‘consequences’ for shadowy ad cartel that organized media boycott
News Corp CEO Robert Thomson called for ācommercial consequencesā for the now-defunct left-wing advertising cartel ašccused of organizing an ad boyź¦ cott against a slew of news outlets and platforms ā including The Post.
The Global Alliance for Respļ·ŗonsible Media, or GARM, was abruptly shut down Thursday after a damning report by the House Judiciary Committee uncovered evidence that its far-let boss Robert Rakowitz coordinated a campaign to stifle free speech and restrict ads.
Thomson said The Postās parent News Corp is now āconsidering our legal options in confronting the blatant political bias šÆof advertising industry bodies who have done serious damage and denied many advertisers access to a significant audience.ā
āWe applaud the work of the USā House Judiciary Committź§ee in pursuing the misnomer that is the Global Alliance for Responsible Media or GARM, and its coordinated boycott of media platforms perceived to be unfashionable by illiberal liberals,ā Thomson said on the companyās fourth-quarter earnings call Thursday.
āGARM harm has š„been real, and there need to be commercial consequences,ā he added.
A News Corp spokesperson declined further commenš„t.
GARMź¦¬ was a nonprofit initiative formed by the World Federation of Advertisers, an international trade group whose members include dozens of top corporations that account for 90% of global marketing spending, according to its website.
Earlier this week, Elon Muskās X filed an antitrust suit naming GARM, the WFA and a handful of specific companies — CVS Health, Mars, Orsted and Unilever ā as defendants.
X is seeking trebled compensatory damages and injunctive relief over claims that the defendants participateź¦«d in an illegal ad boycott. The lawsuit, filed in Texas, claims X lost ābillions of dollars in advertising revenueā as a result of their actions.
WFA pointed to the House Judiciary Committeeās report and Xās antitrust lawsuit as key factors in its decision to shutter GšARM.
āGARM is a small, not-for-profit initiative, and recent allegatšions that unfortunately misconstrue its purpose and activities have caused a distraction and significantly drained its resources and financesą²,ā the WFA said in a statement posted to its website Friday.
āWFA therefore is making the difficult decision to disš”continue GARM activities.ā
The House panelās report included an internal conversation in which Rakowištz appeared to brag that X was ā80% below revenue forecastsā since GARM targeted Musk over brand safety issues.
Rakowitz told investigators the email was meant as a āself-effacinš®g joke.ā
The report said GARM relied on tools such as the Global Disinformation Index (GDI), a London-based group that in 2022 unveiled an ad blacklist of 10 news outlets whose opiš¹nion sections tilted conservative or libertarian, including The Post, RealClearPolitics and Reason magazine.
The House Judšiciary Committee is inšvestigating whether GARM, WFA and its members violated Section 1 of the Sherman Antitrust Act, which governs illegal restraint of trade.
In an interview with The Post after GARM was shut down, House Judiciary Chairman Rep. Jim Jordan (R-Ohio) called its demise āgreat news for freedom, free markets, Firsź§t Amendment, all the good things that make America special.ā
āThe World Federation of Advertisers, we think, has tš§øhe same bias,ā Jordan added. āOur investigation is looking at allā of that. Itās all about stopping the censorship however itās done.ā