Ad Industry Group GARM Shuts Down Following Elon Musk’s Lawsuit
The Global Alliance for Responsible Media (GARM), a major ad industry group, is shutting down, just days after Elon Musk-owned X (formerly Twitter) filed a lawsuit alleging the group illegally conspired to boycott advertising on the platform, CNN reports.
GARM, a voluntary initiative run by the World Federation of Advertisers, aimed to help brands avoid having their ads appear alongside illegal or harmful content. In a statement on Friday, the group cited recent allegations, which it believes mischaracterize its purpose and activities, as a distraction that has drained its resources and finances.
While GARM plans to defend itself in court, its demise represents a temporary victory for Musk and X CEO Linda Yaccarino, even before a judge has ruled on the lawsuit.
Yaccarino celebrated the news on X, stating, “No small group should be able to monopolize what gets monetized.” She expressed hope for “ecosystem-wide reform.”
However, experts warn that the lawsuit could further deter advertisers from X. Nandini Jammi and Claire Atkin, founders of the watchdog group Check My Ads Institute, wrote in an op-ed that “everyone can see that advertising on X is a treacherous business relationship for advertisers.”
Musk’s lawsuit alleges that GARM organized a collective effort to withhold billions of dollars in advertising from X due to concerns about the platform’s deviation from brand safety standards following Musk’s acquisition in late 2022.
The lawsuit named four GARM members as defendants: CVS, Unilever, Mars, and the Danish energy company Ørsted.
GARM was established in 2019 following the Christchurch New Zealand Mosque shootings, where the perpetrator livestreamed the attack on Facebook. The group aimed to reduce the placement of ads alongside illegal or harmful content, reporting a decrease from 6.1% in 2020 to 1.7% in 2023.
Musk’s acquisition of X in 2022 triggered similar concerns about brand safety, leading many advertisers to pull their spending due to concerns about misinformation and hate speech. Musk himself has promoted such content on the platform, further alienating advertisers.
While X executives initially hinted at improving ad revenue, Yaccarino admitted in a video on Monday that GARM members had “conspired to boycott X,” jeopardizing the platform’s future.
GARM’s closure raises concerns for other media watchdogs, though a judge previously ruled in favor of a nonprofit in a similar lawsuit against X.
X also sued the Center for Countering Digital Hate, alleging the group violated its terms of service by studying and reporting on hate speech, which X claimed drove away advertisers. A federal judge dismissed the lawsuit in March, deeming it an attempt to punish the nonprofit for protected speech.
The platform also sued the progressive watchdog group Media Matters for its report highlighting antisemitic and pro-Nazi content on X, a report that contributed to a significant advertiser exodus late last year. The case is scheduled for trial next year.
