Three of the world’s largest advertising companies settled Wednesday with the Federal Trade Commission (FTC) over claims that they colluded on policies to combat alleged misinformation that denied advertising revenue to conservative publishers such as Breitbart News.
The FTC said in a complaint filed on Wednesday in the U.S. District Court for the Northern District of Texas that WPP, Dentsu, and Publicis coordinated on policies that limited the number of ads that ran on sites with content that the industry had identified as misinformation. The policy resulted in fewer ads running on media outlets such as Breitbart News, punishing outlets that ran content that was “lawful but disfavored.” The filing explained that these advertisers sought to impose common “brand safety” standards across the digital advertising industry. The FTC stated that the ad agencies, with their primary competitors, Omnicom and IPG, operated through their trade associations to establish a “Brand Safety Floor” to combat “misinformation.”
“The ad agencies’ brand-safety conspiracy turned competition in the market for ad-buying services on its head,” FTC Chairman Andrew Ferguson said in a written statement. “The antitrust laws guarantee participation in a market free from conduct, such as economic boycotts, that distort the fundamental competitive pressures that promote lower prices, higher quality products and increased innovation.”
“As we explain in our complaint, the brand-safety agreement limited competition in the market for ad-buying services and deprived advertisers of the benefits of differentiated brand-safety standards that could be tailored to their unique advertising inventory,” the FTC chairman said.
Ferguson continued:
This unlawful collusion not only damaged our marketplace, but also distorted the marketplace of ideas by discriminating against speech and ideas that fell below the unlawfully agreed-upon floor. The proposed order remedies the dangers inherent to collusive practices and restores competition to the digital news ecosystem.
A spokesman for WPP said in a statement that the agreement “reflects our existing and ongoing commitment to provide our clients with unbiased advice as they decide where to place their media.” A spokesman for Dentsu said the company was “fully committed to operating transparently, with integrity, and in strict compliance with all applicable laws.” Publicis had not responded to a request for comment from the New York Times.
The FTC said in its filing that the ad agencies “coordinated” through the Global Alliance for Responsible Media (GARM), an entity created by the World Federation of Advertisers, of which the three advertisers are members.
Hellbound and Down 