Elon Musk’s X Lawsuit Drains Ad Watchdog’s Resources Leading To Closure
The Global Alliance for Responsible Media (GARM), a nonprofit coalition dedicated to enhancing digital media safety, announced it would be ceasing operations. This decision comes on the heels of a high-profile antitrust lawsuit filed by Elon Musk’s X. The lawsuit, which alleges GARM engaged in illegal activities aimed at boycotting X, has significantly drained the coalition’s resources and ultimately led to its demise.
Founded in 2019, GARM was born out of a critical need to address the rampant spread of harmful content on digital platforms. The catalyst for its creation was the tragic Christchurch mosque shootings in New Zealand, where the perpetrator livestreamed the massacre on Facebook. In the aftermath, advertisers became increasingly concerned about their brands appearing next to such heinous content, prompting them to form GARM under the leadership of the World Federation of Advertisers (WFA).
GARM’s mission was to develop industry-wide standards for brand safety and responsible media practices. By creating frameworks such as the Brand Safety Floor and the Adjacency Standards Framework, GARM provided tools that helped advertisers avoid having their ads placed next to harmful or illegal content, such as hate speech, child exploitation, and terrorism-related material.
According to GARM, these efforts led to a notable decrease in harmful ad placements, from 6.1% in 2020 to just 1.7% in 2023.
Fighting with X
Despite its success, GARM’s existence was thrown into jeopardy when X filed an antitrust lawsuit against the coalition earlier this week. The lawsuit alleges that GARM orchestrated a conspiracy among its members—some of the world’s largest advertisers, including CVS, Unilever, and Mars—to collectively withhold billions of dollars in advertising revenue from X.
The suit claims this coordinated boycott was in response to concerns that X, under Musk’s ownership, had relaxed its content moderation policies, leading to a surge in hateful and harmful content on the platform.
X’s lawsuit is part of a broader strategy to combat what Musk sees as unfair practices by the advertising industry. Since acquiring Twitter in 2022, Musk has taken an aggressive stance against those he believes are undermining free speech on digital platforms. This includes filing lawsuits against organizations that study and report on online hate speech, such as the Center for Countering Digital Hate (CCDH), and more recently, Media Matters.
Musk’s approach has been lauded by some, including House Judiciary Committee Chairman Jim Jordan, who has been investigating whether GARM and other organizations have illegally colluded to demonetize conservative voices.
“This is a big win for the First Amendment and a big win for Chairman Jordan’s oversight work,” said Russell Dye, a spokesman for the committee, echoing sentiments expressed by Musk and other right-wing figures who argue that advertisers should not be able to control online discourse by withholding ad dollars.
In light of the lawsuit, GARM found itself in an untenable position. As a small, not-for-profit initiative with limited financial resources, it was unable to sustain the legal battle while continuing its mission.
“This decision was not made lightly,” Stephan Loerke, CEO of the World Federation of Advertisers, said in a statement to members. “GARM is a not-for-profit organization, and its resources are limited.”
Loerke expressed confidence that the allegations in X’s lawsuit would ultimately be proven baseless, stating, “While I am confident that the outcome will demonstrate our full adherence to competition rules in all our activities, GARM would shut down its operations immediately.”
Information for this briefing was found via The New York Times, Business Insider, and the sources and companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
The irony of the the great protectors of the 1st Amendment. “advertisers should not be able to withhold advertising dollars to control online discourse (disinformation/hate/payday for Musk), by withholding ( (their sic) ad dollars).” So much for the free market. Instead, really really rich controlling bastards will file suit against legitimate non profits and shut them down so they do not have their legitimate say against hate speech and disinformation. Hey 1st amendment people. Not everything you say is not slander and okay. There is this thing in civil, free society called nuance that keeps us free. There is a difference between free for all (and that is not at all what happens for poor people) and free. Get your rich heads out of the sand your spoiled brats.