Major ad group GARM shuts down after Elon Musk’s X files lawsuit

The Global Alliance for Responsible Media (GARM), a prominent advertising industry group has announced it will be shutting down following a lawsuit filed by Elon Musk-owned X. The lawsuit alleges that the group engaged in an illegal conspiracy to boycott advertising on the platform.

13 Aug 2024

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“GARM is a small, not-for-profit initiative, and recent allegations that unfortunately misconstrue its purpose and activities have caused a distraction and significantly drained its resources and finances,” the group said in a statement on Friday. “GARM therefore is making the difficult decision to discontinue its activities.”

GARM is a voluntary initiative managed by the World Federation of Advertisers. It was established to help brands prevent their advertisements from appearing alongside illegal or harmful content. Despite its shutdown, GARM confirmed that it plans to continue defending itself in court.

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"GARM was a voluntary cross-industry initiative created in 2019 to address digital safety. GARM was set up in the wake of the Christchurch New Zealand Mosque shootings during which the killer live-streamed the attack on Facebook. This followed a slew of high-profile cases where brands’ ads appeared next to illegal or harmful content, such as promoting terrorism or child pornography – creating both consumer and reputational issues for brands."

The closure of GARM represents a temporary victory for Musk and X CEO Linda Yaccarino, although a judicial ruling has yet to be made.

“No small group should be able to monopolise what gets monetised. This is an important acknowledgment and a necessary step in the right direction. I am hopeful that it means ecosystem-wide reform is coming,” Yaccarino posted on X.