Earlier this week, Elon Musk’s social media platform X revealed its decision to sue members of an initiative called the Global Alliance for Responsible Media (GARM).
On Thursday, shortly after X launched a federal antitrust lawsuit, the organization behind GARM — the World Federation of Advertisers (WFA) — announced the dissolution of GARM. The WFA and several major corporations were amongst the defendants named in the suit, while GARM itself was not included.
X’s lawsuit asserts that WFA and several key advertising partners “colluded” to “significantly restrict billions in advertising revenue” to X.
Following this announcement, Linda Yaccarino, CEO of X, took to the platform to celebrate GARM’s termination. However, at least one industry watchdog is warning that this could lead to adverse consequences for X.
Dissolution of GARM
A communication from WFA conveyed to its members indicated that GARM was being “dismantled” as a response to X’s legal actions. This initiative functioned as a non-profit with limited personnel and aimed at helping members steer clear of promoting on harmful platforms; it employed only two full-time staffers.
Despite this development, the WFA intends to contest X’s lawsuit vehemently, maintaining their stance that no illegal activities occurred.
The House Judiciary Committee, led by Republican representatives and which provided crucial findings used by X in its case against WFA, proclaimed GARM’s shutdown a significant victory for free speech rights.
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Citing this report from Congress in her comments on social media, Yaccarino expressed: “A select few should not wield control over what can be monetized. This acknowledgment is crucial and signifies progress towards essential reforms across our ecosystem.”
The Aftermath for X
The appreciation shown by Yaccarino has raised eyebrows among certain analysts such as Claire Atkin from Check My Ads. This adtech watchdog challenges platforms hosting controversial content alongside their ads and contends that celebrating might be hasty on part of X.
“Advertisers are discerning when it comes to placements,” Atkin stated while speaking with Mashable. “The truth is that this change will likely drive more advertisers away from using X altogether.”
A recent report elaborated on Check My Ads’ perspective regarding GARM’s closure; they predict advertisers may shy away from collaborating with platforms like X because they can’t rely on endorsements previously aligned with GARM’s recommendations. Notably though just last month,X had boasted about its re-integration into GARM — proclaiming it as evidence of their “commitment towards ensuring brand safety.”
This situation illustrates an irony: just weeks before securing support from an ally like GARM through reinstatement postured as dedication toward protecting brands—yet now filing litigation directly prompts its dissolution thereby lacking any similar entity capable of endorsing partnerships with them moving forward if indeed such collusion existed beforehand?
