Ad industry group halts operations amid X's antitrust lawsuit

AP Photo/Benjamin Fanjoy, File

• By Ezra Levant

GET YOUR TRUMP SWAG HERE!

Show your solidarity with former President Trump and get your Trump swag at the Rebel News store!

GET YOUR TRUMP SWAG HERE!

The World Federation of Advertisers (WFA) announced Thursday it would "discontinue" activities for its Global Alliance for Responsible Media (GARM) initiative. This decision comes on the heels of an antitrust lawsuit filed by X, formerly known as Twitter, against the organization earlier this week.

WFA CEO Stephan Loerke informed members via email that the choice was not made lightly, citing GARM's limited resources as a non-profit entity, Business Insider reports. Loerke expressed confidence that the legal proceedings would ultimately vindicate GARM, stating their intention to contest X's allegations in court.

The lawsuit, filed in Texas, accuses GARM members of illegally conspiring to "collectively withhold billions of dollars in advertising revenue" from the platform. Notable companies such as Unilever, Mars, CVS, and Ørsted are also named as defendants in the case.

GARM, established in 2019, is a US-based initiative that developed frameworks for defining concepts like hate speech, brand safety, and misinformation. With over 100 members including major advertisers and agency groups, GARM's guidelines were voluntary and did not specifically target any platforms.

X's advertising revenue has seen a significant decline since Elon Musk's acquisition, with many large advertisers departing the platform following changes in ownership and content moderation policies. The lawsuit alleges that GARM influenced top brands to cease advertising on the platform after Musk's takeover in 2022.

A Message to X Users pic.twitter.com/6bZOYPhWVa

— Linda Yaccarino (@lindayaX) August 6, 2024

The organization, operating with only two full-time staff members, was already grappling with legal requests from House Judiciary Committee Chairman Jim Jordan regarding alleged collusion to demonetize conservative platforms.

In a related development, video platform Rumble has also filed an antitrust suit against the WFA, WPP, and GroupM, alleging a collective agreement to restrict advertising on social platforms, including Rumble.

Musk has previously encouraged other companies feeling "systematically boycotted by advertisers" to pursue legal action, suggesting potential criminal liability under the RICO Act.