Ad Group 'Discontinuing' GARM Initiative Following Elon Musk Lawsuit

The World Federation of Advertisers (WFA) has announced the discontinuation of the Global Alliance for Responsible Media (GARM) initiative following an antitrust lawsuit filed by Elon Musk's X (formerly Twitter). The lawsuit alleges that GARM's members, including major companies like Unilever and Mars, colluded to withhold advertising revenue from X. WFA CEO Stephan Loerke stated that the decision to discontinue GARM was not made lightly, citing the organization's limited resources. The WFA and GARM plan to contest the lawsuit, asserting their compliance with competition rules. The lawsuit comes amid a backdrop of declining advertising revenue for X since Musk's acquisition, which has seen significant changes in the platform's advertising policies and staffing. Concerns have been raised about the impact of the lawsuit on GARM's operations, given its small staff and ongoing investigations into its practices. Musk has previously encouraged other companies to pursue legal action against what he perceives as systematic boycotts by advertisers. The situation highlights ongoing tensions in the advertising landscape, particularly regarding the balance of power between platforms and advertisers.

- WFA is discontinuing GARM due to an antitrust lawsuit from Elon Musk's X.

- The lawsuit claims GARM members colluded to withhold advertising revenue from X.

- WFA and GARM intend to contest the allegations in court.

- GARM has limited resources and only two full-time staff members.

- The lawsuit reflects broader tensions in the advertising industry post-Musk's acquisition of Twitter.