A brand safety initiative, the Global Alliance for Responsible Media (GARM), is shutting down following a lawsuit filed by social media platform X. The World Federation of Advertisers confirmed the discontinuation of GARM, citing recent allegations that misrepresented the initiative's purpose and activities. The lawsuit accused GARM of coordinating a massive advertiser boycott after Elon Musk's acquisition of the company in 2022, leading to a distraction and financial strain on GARM.
X, formerly Twitter, sued the World Federation of Advertisers and several member companies, alleging that GARM's actions contributed to an advertising pause post-Musk's acquisition. The lawsuit claimed that advertisers collaborated with GARM to withhold billions of dollars in advertising revenue from the company, alleging violations of antitrust laws based on findings from the U.S. House Judiciary Committee.
X's CEO criticized the alleged monopolization of advertising revenue and applauded GARM's discontinuation as a step in the right direction. While this may be a win for X, the legal battle with the advertisers and GARM continues, raising questions about the future of digital safety efforts within the World Federation of Advertisers.
Established in 2019, GARM aimed to enhance transparency in social media ad placements by offering tools to help advertisers avoid supporting harmful and illegal content inadvertently. The initiative successfully reduced such ads from 6.1% in 2020 to 1.7% in 2023, according to the World Federation of Advertisers.
The lawsuit against X focused on the aftermath of Musk's takeover of the platform, not the later dispute with advertisers in 2023 over content concerns. Musk faced backlash for his response to advertisers fleeing the platform, accusing them of blackmail and urging them to leave. Despite attempts to clarify his remarks, the fallout from the dispute continues.
