GARM to shut down after Elon Musk’s X sues over boycott allegations

Advertising group, the Global Alliance for Responsible Media (GARM), announced it would shut down after being sued by Elon Musk’s X (formerly Twitter). The lawsuit, filed by X, accused GARM of organising a boycott against the platform, violating antitrust laws.

GARM, a nonprofit coalition led by the World Federation of Advertisers, informed its members of the closure via email, as reported by The New York Times. The group stated that it doesn’t have the financial resources to continue operations while fighting the lawsuit in court. Stephan Loerke, CEO of the World Federation of Advertisers, expressed confidence that GARM’s actions were legal, but the organisation couldn’t afford the legal battle.

X’s CEO Linda Yaccarino stated that no small group should control what content gets monetised. The lawsuit stemmed from Musk’s $44 billion purchase of X in 2022, where he promised free speech on the platform, leading many brands to pull their ads, fearing association with harmful content.

GARM was created after the 2019 Christchurch mass shooting to pressure social platforms into adopting stricter content moderation. The group had recommended advertisers pause spending on X after Musk’s acquisition, prompting companies like CVS and Unilever to do so. These companies were also named in the lawsuit.

Elon Musk has vowed to fight against brands that boycott X, saying the platform has tried to be co-operative but now considers it a “war.” The lawsuit and GARM’s collapse may further distance advertisers from X.