The Global Alliance for Responsible Media (GARM) quickly suspended its activities following an antitrust lawsuit filed by Elon Musk’s X. The lawsuit, lodged in a Texas federal court on Tuesday, accuses GARM and several of its member companies of engaging in an illegal ad boycott that targeted the social media platform.
The lawsuit not only names GARM but also its parent organization, the World Federation of Advertisers (WFA), and several high-profile companies, including CVS Health, Mars, Orsted, and Unilever. These companies are said to control 90% of the global marketing efforts, giving them substantial influence over the advertising market.
This legal battle comes on the heels of a GOP congressional report that revealed the extent of GARM’s advertising monopoly, which has reportedly been used to stifle conservative voices. The report, highlighted by Rep. Jim Jordan (R-OH), claims that GARM and its affiliates have used their market power to blacklist right-wing media outlets, effectively cutting off their revenue streams.
Linda Yaccarino, CEO of X, responded to the lawsuit with strong words, emphasizing the need to protect the marketplace of ideas. “People are hurt when some viewpoints are not funded over others as part of an illegal boycott,” Yaccarino said, adding that the lawsuit seeks to address a “broken ecosystem” that allows such practices.
In a surprising turn, the WFA announced on Thursday that it would temporarily discontinue GARM’s activities, though it plans to continue fighting the lawsuit in court. The organization stated that the decision to suspend GARM was not taken lightly but insisted that it remains confident in its compliance with competition rules.
The lawsuit has sparked a broader discussion about the role of advertising monopolies and their impact on free speech, particularly in the context of conservative media. While GARM’s suspension is a significant development, the legal battle is far from over, with both sides preparing for a contentious court fight.
