Aug 09, 2024 13:32:00

An advertising association that was sued by X for 'forming a conspiracy to boycott X's advertising' has ceased operations.

X (formerly Twitter) claims that 'the fact that advertisers stopped placing ads on X during the same period is an illegal act that violates antitrust laws,' and has filed a lawsuit against the World Federation of Advertisers and its member companies. In response to this lawsuit, it was revealed that the World Federation of Advertisers' initiative 'Global Alliance for Responsible Media (GARM)' has ceased its activities.

Advertising Initiative Shuts Down Following X Lawsuit Over Spending Pullback - WSJ

https://www.wsj.com/articles/advertising-initiative-shuts-down-following-x-lawsuit-over-spending-pullback-cd433217

Ad industry initiative abruptly shuts down after lawsuit filed by Elon Musk's X | Ars Technica
https://arstechnica.com/tech-policy/2024/08/ad-industry-initiative-abruptly-shuts-down-after-lawsuit-filed-by-elon-musks-x/

GARM is an initiative founded in 2019 aftera mass shooter live-streamed his crime on Facebook , and several advertising and website operators are involved. GARM's official page states that it works to 'prevent ads from being placed near illegal or harmful content that undermines brand trust,' and emphasizes that 'GARM will not participate in any boycotts' and 'GARM will not force member companies on which websites to advertise on.'

However, X claims that 'GARM instructed its member companies to stop purchasing X's ad space or reduce the amount of purchases,' and on August 6, 2024, it filed a lawsuit against the World Federation of Advertisers and its member companies in court.

Elon Musk declares 'this is war' on the advertising industry in Twitter's lawsuit against the World Federation of Advertisers - GIGAZINE

by UK Government

According to reports, GARM has suspended operations following a lawsuit from X. In an email announcing the suspension, Stephan Loerke, head of the World Federation of Advertisers, said, 'We intend to defend against X's claims in court,' and 'The decision to dissolve GARM was not taken lightly. GARM is a non-profit with limited resources.'

After GARM's breakup was reported, X CEO Linda Yaccarino posted, 'No small group should be able to monopolise anything that's monetized. This is an important recognition and a necessary step in the right direction. I hope that (GARM's breakup) means that a shake-up of the entire ecosystem has begun.'

No small group should be able to monopolize what gets monetized. This is an important acknowledgment and a necessary step in the right direction. I am hopeful that it means ecosystem-wide reform is coming. https://t.co/BlHqHqZEyp
— Linda Yaccarino (@lindayaX) August 8, 2024

X was one of the member companies of GARM, but temporarily withdrew from GARM and reported rejoining GARM on July 1, 2024.

We're excited to announce that X has reinstated our relationship with the @wfamarketers Global Alliance for Responsible Media. As of today, X is included as a member of #GARM here: https://t.co/vZ3imzeXda

X is committed to the safety of our global town square and proud to be…
— Safety (@Safety) July 1, 2024