GARM members, including CVS Health, Mars, Ørsted, and Unilever, are also named in the suit. This legal action follows a report from the House Judiciary Committee claiming that “GARM and its members directly organized boycotts and used other indirect tactics to target disfavored platforms, content creators, and news organizations in an effort to demonetize and, in effect, limit certain choices for consumers." The report suggests that GARM and WFA may have engaged in coordinated conduct that violates the Sherman Act, a federal statute that prohibits unreasonable restraints of trade and allows for criminal and civil penalties. X CEO Linda Yaccarino, in an open letter to advertisers, accused the organizations of costing the company billions of dollars due to their "illegal behavior." She stated that X is “compelled to seek justice for the harm that has been done,” and hinted that additional defendants might be named as new information surfaces. In a video statement posted to the platform, Yaccarino said she was “was shocked by the evidence uncovered by the House Judiciary Committee that a group of companies organized a systematic illegal boycott against X.”Social media company X has filed an antitrust lawsuit against the Global Alliance for Responsible Media (GARM), World Federation of Advertisers (WFA), alleging that the two organizations orchestrated an “illegal boycott” against the platform.
A Message to X Users pic.twitter.com/6bZOYPhWVa According to the committee, WFA members wield significant market power in the advertising industry, representing approximately 90 percent of global advertising spending, which amounts to nearly $1 trillion annually. The report highlights several instances of alleged misconduct. In one instance, GARM reportedly recommended that its members cease all paid advertising on X following Elon Musk’s acquisition of the company. In another case, GARM allegedly threatened Spotify over comments made by comedian and top-ranked podcast host Joe Rogan, who stated during a show that young healthy people do not need to receive a COVID-19 vaccine. The report also cites a strategy allegedly discussed by GARM to block conservative news outlets like Fox News, The Daily Wire, and Breitbart News, urging members to leverage news ranking organizations to portray these outlets as sources of misinformation. “This group is no match for the power of our users, all of you, the very same users that have driven usage of X to all time highs,” Yaccarino added. “I joined X because I believe in the power of the global town Square. It's users like you, people of all backgrounds and opinions who make X indispensable. You deserve an open platform where your views can be expressed without restriction and without fear.” Shortly after the lawsuit was announced, video platform Rumble issued a statement saying it was joining X in the lawsuit. “The brand safety standards set by advertisers and their ad agencies should succeed or fail in the marketplace on their own merits and not through the coercive exercise of market power,” Rumble’s complaint reads. “All of this illegal conduct is done at the expense of platforms, content creators, and their users, as well as the agencies’ own advertiser clients who pay more for ads as a result of their collusion.”
— Linda Yaccarino (@lindayaX) August 6, 2024
