The World Federation of Advertisers (WFA) announced Thursday that it is “discontinuing” activities for its Global Alliance for Responsible Media (GARM) initiative. This decision follows an antitrust lawsuit filed earlier this week by Elon Musk's X.
In a communication to members, WFA CEO Stephan Loerke emphasized that the choice to halt GARM's activities was “not made lightly,” citing the organization’s limited resources as a factor. Despite this, Loerke asserted that both the WFA and GARM plan to vigorously contest X's allegations in court, expressing confidence that the case will affirm their commitment to competitive practices.
The lawsuit, filed in a Texas court, accuses GARM members of illegally conspiring to “withhold billions of dollars in advertising revenue” from X. Defendants named include prominent GARM members like Unilever, Mars, CVS, and Ørsted. The lawsuit follows a period of significant turbulence for X, with its advertising revenue declining sharply after Musk's acquisition and subsequent changes to the platform.
GARM, established in 2019, aimed to “develop” common standards for issues such as hate speech and misinformation. Its frameworks were said to be voluntary.
An antitrust claim was also made by Rumble earlier this week against the WFA, WPP, and GroupM, accusing them of limiting advertising on various social platforms.
X CEO Linda Yaccarino commented on the situation, expressing hope that this development signifies necessary changes in the advertising ecosystem.
WFA and GARM representatives have not yet responded to requests for further comment.
