Elon Musk, owner of the platform X, has initiated a federal lawsuit against the Global Alliance for Responsible Media (GARM) and several of its members, including CVS Health, Mars, Orsted, and Unilever, accusing them of antitrust activities.
The lawsuit, filed in the U.S. District Court for the Northern District of Texas, follows allegations that GARM’s actions have violated antitrust laws by censoring conservative voices and coordinating efforts to limit free speech on X. The World Federation of Advertisers, which supports GARM, has also been named in the lawsuit. GARM has not yet commented on the matter.
Linda Yaccarino, CEO of X, publicly announced the lawsuit in a letter to advertisers, emphasizing that the decision was not taken lightly but was a necessary response to GARM’s actions.
The Republican-led House Judiciary Committee has previously accused GARM members of antitrust violations, claiming they have significant influence in the advertising industry and have been censoring conservative viewpoints.
A report from the committee in July highlighted these concerns and noted a reduction in GARM’s communication, suggesting the organization has become more secretive under legislative scrutiny.
The lawsuit follows Musk’s public statements last month, where he suggested X had no choice but to pursue legal action, accusing GARM of operating like a cartel and undermining X’s revenue by restricting ad spending.
Musk blamed GARM’s influence for significant financial losses at X, and his statements were echoed by Yaccarino in her letter, which argued that GARM’s actions were damaging to the platform’s users by undermining the diversity of viewpoints available in the “Global Town Square” of X.
This legal action comes shortly after X rejoined GARM, aiming to reassure advertisers about the platform’s commitment to safety. The move to sue GARM highlights a sharp reversal in Musk’s stance toward the nonprofit and underscores a fundamental clash between Musk’s vision for X and the advertising industry’s demands for stringent brand safety measures.
Musk’s leadership has faced significant advertiser backlash since his takeover of X in late 2022, with many brands pulling their ads due to concerns over content moderation.
The conflict between Musk and advertisers has been exacerbated by his controversial actions and statements, including his endorsement of an antisemitic conspiracy theory.
Musk’s approach to content moderation, which has seen a relaxation of policies and reinstatement of previously banned figures, stands in stark contrast to advertisers’ requirements for brand safety. This ongoing tension has resulted in a steep decline in X’s ad revenue, with GARM members vocalizing their concerns about the platform’s ability to maintain a safe advertising environment.
