The Global Alliance for Responsible Media (GARM) has suspended its operations following an antitrust lawsuit filed by Elon Musk’s X. The lawsuit, submitted in a Texas federal court on Tuesday, accuses GARM and several of its member companies of coordinating an illegal ad boycott that targeted X, allegedly to suppress conservative voices on the platform.
Named in the lawsuit are GARM’s parent company, the World Federation of Advertisers (WFA), and major corporations such as CVS Health, Mars, Orsted, and Unilever. These entities are said to control 90% of global marketing efforts, giving them substantial influence over the advertising market.
The lawsuit follows a GOP congressional report that exposed GARM’s alleged monopolistic practices. Rep. Jim Jordan (R-OH) highlighted the findings during a hearing in July, accusing GARM and the WFA of using their market dominance to censor conservative media by cutting off their advertising revenue.
X CEO Linda Yaccarino responded to the lawsuit by condemning the actions of GARM and its affiliates, stating, “The marketplace of ideas is harmed when illegal boycotts prevent some viewpoints from being funded.” Yaccarino emphasized that the lawsuit is not just about financial compensation but about correcting a flawed system that allows such practices to persist.
In a significant development, the WFA announced on Thursday that it would temporarily suspend GARM’s activities, though it intends to continue fighting the lawsuit in court. The WFA described the suspension as a necessary step as it reevaluates its position amid the legal challenges.
The suspension of GARM’s operations is a notable victory for Musk and X, but the legal battle is likely to continue. The case has sparked a broader discussion about the influence of advertising monopolies and their impact on free speech, particularly concerning conservative voices in the media.