GARM Group of advertisers shuts down after Elon Musk lawsuit

The Global Alliance for Responsible Media (GARM), formed in 2019 to create brand safety standards for digital platforms, has announced it is shutting down. This decision comes after an antitrust lawsuit filed by Elon Musk, the owner of X (formerly Twitter). Musk’s lawsuit alleges that GARM and its member companies, which include many significant advertisers, conspired to harm his platform by withholding billions of dollars in advertising revenue.

The World Federation of Advertisers (WFA), the parent organization of GARM, informed its members about the closure through an email. WFA CEO Stephan Loerke cited limited resources as the reason for dissolving GARM, which functioned as a non-profit group.

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Despite ceasing operations, the WFA stated it plans to challenge Musk’s accusations in court, standing by the legality of GARM’s activities.

GARM controversies and its end

GARM, founded in 2019 to create safety guidelines for brands on digital platforms, particularly in combating hate speech and misinformation, has faced significant controversy. The organization has been criticized for allegedly influencing advertisers to withdraw from controversial platforms, such as X (formerly Twitter).

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The U.S. House Judiciary Committee mentioned GARM in a report, accusing the group of having an anti-conservative bias and engaging in anti-competitive practices. GARM, however, denied these accusations, asserting that its focus was on ensuring brand safety online without infringing on free speech.

Since Elon Musk acquired Twitter/X, the platform has seen a sharp decline in advertising revenue, with several major advertisers pulling out. Musk blamed this decline on GARM, claiming the organization encouraged a coordinated boycott against his platform.

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In response, Musk and X filed a lawsuit against GARM last Tuesday (6). Musk, expressing his frustration on X, declared, “We tried peace for two years, now it’s war.”

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