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Advertising group shuts down after Elon Musk’s X files lawsuit

Bloomberg
Bloomberg • 2 min read
Advertising group shuts down after Elon Musk’s X files lawsuit
X’s business, which is largely dominated by advertising, has declined close to 50% since Musk took over the platform and loosened content safety rules. Photo: Bloomberg
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The Global Alliance for Responsible Media, a prominent coalition of advertisers, dissolved on Thursday, just days after Elon Musk’s X, formerly Twitter, filed a lawsuit against the organisation. 

GARM was established in 2019 by the World Federation of Advertisers, a network of major businesses whose members include Nike, McDonald’s and Procter & Gamble, among others.

The coalition provided a set of widely-used guidelines for brand safety controls, which help advertisers prevent harmful content, such as hate speech or violent content, from appearing next to their advertisements on social media platforms and other places.

Musk’s X filed a lawsuit against GARM on Tuesday, claiming the organisation was responsible for an “illegal” advertising boycott that took place in 2022 shortly after Musk took over the company, then called Twitter. A spokesperson for GARM said the organisation would issue a statement regarding its closure, but declined to provide further details. 

Musk has a long history of filing lawsuits against organisations he perceives as threatening to X’s struggling advertising business.

Last July, X sued a nonprofit group that researched online hate after it found an increase in harmful content on the site.

See also: Google defends ad tech as safe, says it rivals Meta, Amazon

Then in November, X sued Media Matters for America, after the organisation found antisemitic content next to advertisements from major brands. After the report, which coincided with Musk himself engaging with antisemitic posts on the network, advertisers including Walt Disney and Apple pulled their ads from the platform.

Lou Paskalis, an former ad executive who now runs the consultancy firm AJL Advisory, described Musk’s decision to sue GARM as “extraordinary” and said that the group’s closure will have a “chilling effect” on how the industry operates moving forward. “I’m enraged by this,” he said.

X’s business, which is largely dominated by advertising, has declined close to 50% since Musk took over the platform and loosened content safety rules.

The changes, combined with Musk’s own engagement with accounts that spread conspiracy and racist sentiments, drove away advertisers concerned about the type of content their ads would appear next to. 

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