Elon Musk’s X Just Sued a Nonprofit Advertising Group Out of Existence

The Global Alliance for Responsible Media (GARM), a key advertising industry group, has announced its closure just days after Elon Musk’s X, formerly known as Twitter, filed a lawsuit against it. The lawsuit, filed in a Texas federal court, accuses GARM of conspiring to withhold billions of dollars in advertising from the platform following Musk’s acquisition in late 2022.

GARM, a not-for-profit initiative established in 2019 under the World Federation of Advertisers, was created to help brands prevent their ads from appearing alongside illegal or harmful content. The group, which includes over 100 members, has been instrumental in reducing the placement of ads near such content, boasting a reduction from 6.1% in 2020 to 1.7% in 2023.

However, the lawsuit filed by X alleges that GARM organized a collective boycott, significantly impacting the platform’s ad revenue. Despite the ongoing legal battle, GARM confirmed it will continue to defend itself in court but acknowledged that the lawsuit has drained its resources, leading to the decision to shut down.

The closure of GARM is seen as a temporary victory for Musk and X CEO Linda Yaccarino, who have been vocal about their concerns regarding advertising practices on the platform. Yaccarino, in a statement on X, expressed optimism about the potential for broader industry reform following GARM’s closure, emphasizing that no small group should control what gets monetized.

However, critics argue that the lawsuit could further damage X’s already struggling ad business. Nandini Jammi and Claire Atkin, founders of the watchdog group Check My Ads Institute, warned that the legal action might deter even more advertisers from using the platform, highlighting the risks associated with advertising on X.

The lawsuit is part of a broader pattern of legal actions by X against organizations that have criticized the platform. X has also sued the Center for Countering Digital Hate and the progressive watchdog group Media Matters, both of which have raised concerns about the platform’s handling of hate speech and harmful content.

GARM’s closure raises concerns about the future of other media watchdogs, as the ad industry and social media platforms continue to grapple with issues of content moderation and brand safety.