Janice R. Andrews
Only a few days after being mentioned in a high-profile antitrust case brought by X, the social media platform previously known as Twitter, one of the most powerful organizations in the advertising business, the Global Alliance for Responsible Media (GARM), is allegedly ending its operations. The World Federation of Advertisers (WFA), a number of significant advertisers, and GARM are all accused in the case of coordinating an unlawful boycott that prevented X from receiving billions of dollars in advertising income.
The 2019 establishment of GARM was crucial in establishing brand safety guidelines for international marketers. It functions under the auspices of the WFA, a group that was also mentioned in X’s case. The WFA’s CEO, Stephan Loerke, reportedly sent members an email announcing GARM’s closure, as Business Insider reports. Loerke noted that GARM and the WFA are ready to fight the case, despite the group’s limited resources as a charity.
The announcement of GARM’s termination was enthusiastically received by X CEO Linda Yaccarino, who called it “an important acknowledgement and a necessary step in the right direction.” The social media company’s position that the purported conspiracy had a major negative influence on its advertising income is reflected in Yaccarino’s statement. X’s ad income has significantly decreased over the last two years, partly due to the departure of big sponsors. This retreat came after several investigations exposed the platform’s problems with antisemitic and hateful material.
GARM’s methods have already drawn criticism. A report from the House Judiciary Committee labeled it and charged the organization with “anti-conservative bias” and “anti-competitive” activity. GARM has continuously refuted these claims, referring to them as “unfounded.” The organization was first established to fight the commercialization of dangerous information on the internet in reaction to a mass massacre that was live streamed on Facebook.
GARM defended its goals in a statement issued earlier this week, saying, “It is purposeful to distort GARM’s activities in order to raise the possibility that GARM procedures may restrict free expression. GARM is neither a lobby nor a watchdog. GARM opposes and neither engages in boycotts of any type.
The end of GARM’s operations is a major step forward in the continuing conflict between X and the advertising business as the legal struggle plays out. The decision made in this lawsuit may have a significant impact on how social media companies and advertising interact.
