U.S. Rep. Jim Jordan (R-Ohio) on Wednesday launched an investigation into the merger of two advertising giants over ties to an anti-conservative cartel that sought to cut off funding to news organizations, the Post reported. Reported.
The House Judiciary Committee chairman sent a letter to the CEOs of Omnicom and Interpublic Group, founding members of the left-wing World Federation of Advertisers (WFA) and its now-defunct Global Alliance for Responsible Media (GARM) initiative. Investigation regarding antitrust laws.
According to a letter obtained by the newspaper, the committee ordered the companies to preserve documents and all communications with WFA and GARM and provide the information to the House of Commons.
In the letter, the House of Representatives asked Omnicom and Interpublic to clarify what precautions they have taken to avoid repeating GARM's anticompetitive history, and to address any political involvement the companies may have had. It also required disclosure of partisan “brand safety” efforts.
The committee asked for responses to be sent by the afternoon of January 7 at the latest.
Publication of the investigation comes after the paper's Charlie Gasparino said this week that the deal could invite scrutiny from President Trump's Antitrust Division, the Federal Trade Commission and the FCC over its use of controversial ratings services. This was done after exclusive reporting.
If federal authorities can prove that there was a deal to skew the scorers' scores to appease left-wing executives in the advertising industry, they could pursue antitrust charges, people familiar with the matter said.
Omnicom and Interpublic did not immediately respond to The Post's requests for comment.
Omnicon's acquisition of rival Interpublic announced earlier this month will create the world's largest advertising agency with more than 100,000 employees and approximately $25 billion in annual revenue.
The commission is investigating whether large mergers stifle competition, especially among conservatives, as GARM found to be the case earlier this year.
According to reports, GARM has accused the right-leaning platform of spreading “so-called harmful content” and badmouthing more than 40 major companies, including Adidas, American Express, Bayer, BP, Carhartt, Chanel CVS, and General Motors. He claimed that the company deprived him of advertising revenue. Previous reporting in the Letter and the Post.
The ad cartel led a widespread boycott of X, formerly known as Twitter, after Tesla founder Elon Musk acquired the social media platform in 2022, according to the letter.
GARM also attacked Joe Rogan's hugely popular Spotify podcast, which hosted President-elect Donald Trump during the October campaign.
GARM is said to have directed companies to redirect advertising dollars away from right-wing news organizations such as News Corp.'s Post and Fox News.
A House committee found that GARM conspired to squash conservative voices in mainstream media and alternative platforms.
Robert Rakowitz, founder of the advertising cartel, summed up GARM's purpose: “[e] We will fund the voices we want to empathize with and shut down the advertising ecosystem to bad actors,” the letter said.
GARM was ultimately shut down in August, days after Musk slapped the group with a federal antitrust lawsuit.
Mr. Jordan declined further comment.
