Social media platform X CEO Linda Yaccarino today announced that the platform has filed an antitrust lawsuit against the Global Alliance for Responsible Media (GARM) and the World Federation of Advertisers (WFA). Yaccarino accused the organizations, along with their members CVS Health, Mars, Orsted, and Unilever, of “systematically and illegally boycotting” the platform.
Allegations and Findings
In her testimony, Yaccarino cited a July report by the House Judiciary Committee titled “Harms of GARM,” which found that large corporations, advertising agencies, and industry associations have engaged in boycotts and other coordinated efforts to demonetize platforms, podcasts, news outlets, and other content that GARM and its members find objectionable. The report’s authors say the collusion could reduce the diversity of content and viewpoints available to consumers.
X alleges in its lawsuit that GARM, a coalition of large advertisers, violated antitrust laws by “colluding” with its members in 2022 to refuse to advertise on the social media platform and “collectively withhold billions of dollars in advertising revenue” that were owed to X, then known as Twitter, after it came under Elon Musk’s control, notes NIX Solutions.
Background and Impact
GARM was founded by the World Federation of Advertisers in 2019 in an effort to “help the industry address illegal or harmful content on digital media platforms and its monetization through advertising,” according to the organization’s website. Last week, the House Judiciary Committee expanded its investigation into GARM, asking more than 40 of its members to produce documents and answer questions.
“The illegal behavior of these organizations and their leaders has cost X billions of dollars,” Yaccarino said in a public letter to advertisers. “People suffer when the marketplace of ideas is undermined and some viewpoints are defunded at the expense of others through illegal boycotts.”
We will keep you informed as more information becomes available on this developing story.