Despite widespread criticism of X’s lawsuit against the Global Alliance for Responsible Media (GARM), the legal move appears to have partially achieved its intended effect.
Today, the World Federation of Advertisers (WFA), which oversees the GARM initiative, announced it will be “pausing” GARM activities for the time being.
As reported by Business Insider:
“Stephan Loerke, the CEO of the WFA, informed members via email that the decision was ‘not made lightly,’ emphasizing that GARM is a not-for-profit organization with limited resources. Loerke also stated that the WFA and GARM plan to contest the allegations in X’s lawsuit in court, confident that the case will ‘demonstrate our full adherence to competition rules in all our activities.'”
While the WFA intends to fight X’s lawsuit, it is currently scaling back the GARM program as it evaluates its options.
To recap, earlier this week, X announced it is suing GARM and the WFA for damages, alleging that the group orchestrated an advertiser boycott against X, seemingly based on ideological grounds.
The lawsuit is based on a recent report submitted to the House Judiciary Committee, which suggests that GARM members have “colluded to suppress voices and views disfavored by leading marketers.” Specifically, the report claims that GARM has directed its members away from conservative-leaning outlets, thereby cutting off their revenue streams. Such actions, according to the report, may violate The Sherman Act, which prohibits unreasonable restraints on trade.
Twitter/X was explicitly mentioned in the report, with claims that GARM members were advised to avoid advertising on the platform following Elon Musk’s acquisition.
This is why Musk and his team are now seeking damages, claiming that GARM’s advice has cost the company “billions of dollars.”
While legal experts largely agree that X’s lawsuit is unlikely to succeed, the initiation of costly legal proceedings could be as significant as the outcome itself. Musk has vast financial resources, allowing him to pursue such actions, while GARM and other groups targeted by X are relatively small, not-for-profit or research organizations that cannot afford extensive legal defenses.
As a result, these groups often end up shutting down or reducing their activities, particularly in their analysis of X, to avoid further costs.
We’ve already seen X take a similar approach with several research groups critical of its actions since Musk’s takeover.
