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The Global Alliance for Responsible Media (GARM), a nonprofit initiative established by the World Federation of Advertisers (WFA), has closed. The decision to shut down came after an antitrust lawsuit was filed by Elon Musk’s social media platform, X (formerly known as Twitter). 

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GARM 

GARM’s stated purpose is to protect advertisers from associating their brands with harmful online content, such as hate speech, misinformation, and violence.

The organization’s members included some of the world’s biggest advertisers, like Unilever, Mars, Orsted, and CVS Health, all of whom were named in X’s lawsuit along with GARM and the WFA.

Founded in 2019 by the WFA, with the idea of providing social media oversight. The Christchurch Mosque shootings in New Zealand, were live-streamed on Facebook.  This event exposed the failure of social media platforms to protect users from harmful material. 

GARM’s mission centered on content moderation policies and assuring its member advertisers were steered away from platforms that failed to uphold ethical standards.

Elon Musk and a host of others claim that GARM is a political attack machine for the Left.

Lawsuit and Financial Strain

The closure of GARM follows an antitrust lawsuit filed by X earlier this week. The lawsuit accuses GARM of using its market influence to orchestrate a massive advertiser boycott against X, leading to significant financial losses for the platform.

 According to the lawsuit, X’s ad revenue plummeted as 18 GARM members stopped advertising on the platform, while dozens of others significantly reduced their spending. This boycott, X alleges, has caused the platform billions of dollars in lost revenue.

In a statement, GARM acknowledged that the lawsuit had become a significant distraction and had “significantly drained its resources and finances.”

The organization’s decision to close, while a victory for Musk and X, is seen as a potential setback for brand safety advocates who relied on GARM’s leadership in promoting ethical advertising practices.

Stephan Loerke, CEO of the WFA, communicated with members via email, expressing the difficult decision to shut down GARM.

Loerke stated that the WFA itself would remain fully operational and had intended to fight X’s lawsuit in court. However, he noted, “This decision was not made lightly, but GARM is a not-for-profit organization, and its resources are limited.”

Politics and Ethics

GARM’s closure also touches on the political undercurrents that have shaped the organization’s journey.

Critics, including Musk, have accused GARM of being an “ad cartel” motivated by political agendas. The Republican-controlled House Judiciary Committee had launched an investigation into GARM earlier this year, alleging that the organization had “signaled” its members to pull their advertising from X following Musk’s acquisition of the platform in 2022.

The House committee’s report cited a survey conducted by GARM among its members around the time of Musk’s takeover, which revealed that over 80% of ad buyers viewed the change in ownership as a serious issue, with more than 70% believing it would have a negative impact on Twitter (now X). 

The report argued that GARM’s influence gave advertisers the confidence to withdraw their campaigns from the platform without risking a competitive disadvantage.

Brands Band Together

Musk, who has been vocal about his dissatisfaction with GARM, took to X to express his frustrations. “We tried being nice for 2 years and got nothing but empty words,” he wrote. “Now, it is war.”

X CEO Linda Yaccarino echoed Musk’s sentiment, stating, “No small group should be able to monopolize what gets monetized.”

 She described GARM’s closure as “an important acknowledgment and a necessary step in the right direction,” suggesting that it could lead to broader reforms across the advertising ecosystem.

The WFA, which represents over 90% of global marketing and communications spending, has faced accusations of colluding with GARM to monopolize advertising revenue and collectively withhold billions of dollars from X.

 X’s lawsuit alleges that this collusion had a devastating impact on its business, even after the platform adopted brand safety standards in line with its competitors.