X Files Antitrust Lawsuit Against GARM
On Tuesday, X, the social media platform formerly known as Twitter, took a significant legal step by filing a lawsuit against the Global Alliance for Responsible Media (GARM), a prominent coalition composed of major advertisers. The lawsuit alleges that GARM has violated antitrust laws by coordinating efforts with various brands to discourage them from investing in advertising on the platform.
The lawsuit, which was submitted to a federal court in Texas, contends that GARM “conspired” with influential brands, including CVS, Unilever, and the Danish energy company Ørsted, to collectively withhold billions of dollars in advertising revenue owed to X. This situation arose in the wake of Elon Musk’s acquisition of Twitter in 2022.
Linda Yaccarino, X’s chief executive, emphasized the severity of the allegations in an open letter directed at advertisers, stating, “The illegal behavior of these organizations and their executives cost X billions of dollars. People are hurt when the marketplace of ideas is undermined, and some viewpoints are not funded over others as part of an illegal boycott.”
Following Musk’s takeover, X initially did not conform to GARM’s guidelines. However, in July, the company made a commitment to rejoin the coalition. Recently, the House Judiciary Committee has intensified its investigation into GARM’s activities, sending letters to over 40 member companies urging them to preserve relevant documents and provide answers concerning their affiliations with the group.
Elon Musk has had a tumultuous relationship with advertisers throughout his tenure at X. He previously accused advertisers of attempting to “blackmail” him by withdrawing their advertising investments after he expressed support for an antisemitic conspiracy theory online. Musk even urged brands, “don’t advertise,” employing strong language to underscore his frustration.
Musk notably called out Bob Iger, the chief executive of Disney, a major advertiser on X at the time, after Iger remarked that their association with “Elon Musk and X was not necessarily a positive one for us.”
This story is still developing, and further updates will be provided as more information becomes available.
