X sued advertisers for illegal boycott of social network

Social network X CEO Linda Yaccarino today announced that the platform has filed an antitrust lawsuit against the Global Alliance for Responsible Media (GARM) and the World Federation of Advertisers (WFA). . Yaccarino accused these organizations, along with their members CVS Health, Mars, Orsted and Unilever, of a “systematic illegal boycott” of the platform.

Image source: X

In his speech, Yaccarino refers to a July report from the US House Judiciary Committee entitled “The Harms of GARM.” According to the document, major corporations, advertising agencies and industry associations have engaged in boycotts and other coordinated efforts to demonetize platforms, podcasts, news outlets and other content that GARM and its members deem objectionable. According to the report’s creators, this collusion could lead to a decrease in the diversity of content and viewpoints available to consumers.

X alleges in its lawsuit that GARM, a coalition of major advertisers, violated antitrust laws by “conspiring” with alliance members in 2022 to withdraw advertising from the social media platform and “jointly withhold billions of dollars in advertising revenue” that were owed to X. then known as Twitter, after it came under the control of Elon Musk.

GARM was founded by the World Federation of Advertisers in 2019 in an attempt to “help the industry address the issue of illegal or harmful content on digital media platforms and its monetization through advertising,” according to the organization’s website. Last week, the House Judiciary Committee expanded its investigation into GARM, asking more than 40 alliance members to provide documents and answer questions.

«The illegal behavior of these organizations and their leaders has cost X billions of dollars,” Yaccarino said in a public message to advertisers. “People suffer when the marketplace of ideas is undermined and some viewpoints are unfunded to the detriment of others in illegal boycotts.”