Rumble Joins X to Sue Advertising Cartel that Allegedly Conspired to Withhold Digital Advertising Revenue

Rhea-AI Summary

Rumble (NASDAQ:RUM), a video-sharing platform and cloud services provider, has joined X in filing antitrust lawsuits against an alleged advertising cartel. The suit, filed in the U.S. District Court for the Northern District of Texas, names the World Federation of Advertisers (WFA), WPP, and GroupM Worldwide as defendants. The lawsuit alleges a conspiracy to withhold advertising revenue from Rumble and other digital media platforms through the Global Alliance for Responsible Media (GARM) initiative.

The complaint argues that GARM established arbitrary content standards used to perpetrate an advertiser boycott against Rumble and others. Rumble seeks a declaration of illegal conduct, a permanent injunction, damages, and legal fees. The U.S. House Judiciary Committee is also investigating this matter, with a July interim report suggesting the conduct is likely illegal under antitrust laws.

Positive

• Rumble is taking proactive legal action to address alleged unfair practices in digital advertising
• The lawsuit aligns with an ongoing U.S. House Judiciary Committee investigation, potentially adding credibility to Rumble's claims
• If successful, the lawsuit could lead to improved advertising revenue for Rumble and other digital platforms

Negative

• Rumble is facing challenges in securing advertising revenue due to alleged industry collusion
• The lawsuit indicates potential financial losses for Rumble due to advertising boycotts
• Legal proceedings may result in significant expenses for Rumble

LONGBOAT KEY, Fla., Aug. 06, 2024 (GLOBE NEWSWIRE) -- Rumble (NASDAQ:RUM), the video-sharing platform and cloud services provider, announced that it has joined the social media platform X to file antitrust lawsuits alleging a conspiracy to withhold advertising revenue from Rumble and other digital media platforms.

In its filing in the U.S. District Court for the Northern District of Texas, Rumble named as defendants the World Federation of Advertisers (WFA), as well as the advertising agency WPP and its subsidiary GroupM Worldwide.

The conspiracy centers around an initiative called the Global Alliance for Responsible Media (GARM), created by the WFA, that established arbitrary standards for the content on digital platforms where its members may want to advertise. GARM used those one-size-fits-all standards to perpetrate an advertiser boycott against Rumble and other platforms. The suit also notes that GARM has vast reach since it counts the six largest ad agency holding companies among its members, including defendant WPP.

“The brand safety standards set by advertisers and their ad agencies should succeed or fail in the marketplace on their own merits and not through the coercive exercise of market power,” Rumble’s complaint reads. “All of this illegal conduct is done at the expense of platforms, content creators, and their users, as well as the agencies’ own advertiser clients who pay more for ads as a result of their collusion.”

The unlawful conduct alleged by Rumble is also the subject of an ongoing investigation by the U.S. House Judiciary Committee in Congress. An interim committee staff report issued in July found that the way GARM has operated in this regard “is likely illegal under the antitrust laws and threatens fundamental American freedoms.”

Rumble is seeking a declaration that the defendants’ conduct is illegal, a permanent injunction against the continued conduct, damages, interest, and legal fees, among other relief.

ABOUT RUMBLE

Rumble is a high-growth video platform and cloud services provider that is creating an independent infrastructure. Rumble’s mission is to restore the internet to its roots by making it free and open once again. For more information, visit: corp.rumble.com.

Contact: press@rumble.com

FAQ

What is the antitrust lawsuit filed by Rumble about?

Rumble (NASDAQ:RUM) has filed an antitrust lawsuit alleging a conspiracy by the World Federation of Advertisers, WPP, and GroupM Worldwide to withhold advertising revenue from Rumble and other digital media platforms through the Global Alliance for Responsible Media (GARM) initiative.

Who are the defendants in Rumble's antitrust lawsuit?

The defendants in Rumble's antitrust lawsuit are the World Federation of Advertisers (WFA), WPP, and its subsidiary GroupM Worldwide.

What relief is Rumble seeking in its antitrust lawsuit?

Rumble is seeking a declaration that the defendants' conduct is illegal, a permanent injunction against the continued conduct, damages, interest, and legal fees, among other relief.

Is there any government investigation related to Rumble's antitrust claims?

Yes, the U.S. House Judiciary Committee is conducting an ongoing investigation into the matter. An interim committee staff report issued in July suggested that the conduct in question is likely illegal under antitrust laws.