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The Global Alliance for Responsible Media (GARM) is ceasing its operations following an antitrust lawsuit filed by Elon Musk’s X (formerly Twitter). The World Federation of Advertisers (WFA) informed its members on Thursday that it is “discontinuing” GARM’s activities due to the legal challenge.
Stephan Loerke, CEO of the WFA, communicated via email, as seen by Business Insider, that the decision was made after considerable deliberation. He noted that GARM, a non-profit organization with limited resources, would address the lawsuit in court and expressed confidence that the proceedings would affirm GARM’s commitment to competition laws.
The announcement came shortly after X’s antitrust lawsuit was filed in a Texas court, accusing GARM members of illegal collusion to withhold significant advertising revenue from X. Defendants in the suit include Unilever, Mars, CVS, and Ørsted.
Representatives from the WFA and GARM have yet to comment on the matter. X CEO Linda Yaccarino expressed on X that the move was a step towards necessary reform, emphasizing that no small group should monopolize monetization opportunities.
Established in 2019, GARM aimed to create standardized frameworks for issues such as hate speech and misinformation. Its adoption by over 100 members, including major advertisers and ad tech platforms, was voluntary and did not involve specific recommendations for budget allocation.
Since Musk’s acquisition of Twitter in 2022, advertising revenue has sharply declined, with major advertisers retreating from the platform amid changes in staff and policy. The lawsuit claims that GARM influenced top brands to cease advertising on Twitter, now X.
Additionally, earlier this week, the video platform Rumble filed a separate antitrust suit against the WFA, WPP, and GroupM, accusing them of restricting advertising on social platforms.
Musk has previously encouraged companies affected by alleged systematic boycotts to pursue legal action, suggesting potential criminal implications under the RICO Act.
X representatives have not yet responded to requests for further comment.
