Key Points:
- X Corp and Rumble file antitrust lawsuit against GARM and major advertisers for alleged illegal boycott.
- The lawsuit claims coordinated efforts by GARM and its members to limit ad revenue for X Corp.
- Allegations include attempts to suppress conservative platforms and voices.
In a bold legal move, X Corp, owned by Elon Musk, has filed an antitrust lawsuit against the Global Alliance for Responsible Media (GARM) and the World Federation of Advertisers (WFA). The lawsuit also targets major advertisers such as CVS Health, Mars, Ørsted, and Unilever, accusing them of orchestrating an illegal boycott against X Corp to cut off advertising revenue.
The legal action, filed in the U.S. District Court for the Northern District of Texas, follows a congressional report by the House Judiciary Committee. The report suggests that GARM and its members engaged in activities that violate the Sherman Act, which prohibits unreasonable restraints of trade. It alleges that GARM’s actions were aimed at demonetizing and limiting the reach of certain platforms, content creators, and news organizations, especially those with conservative leanings.
Linda Yaccarino, CEO of X Corp, has been vocal about the impact of GARM’s alleged boycott. In an open letter to advertisers, she emphasized the financial damage caused by these coordinated efforts, stating that X Corp lost billions in potential ad revenue. Yaccarino highlighted the necessity of the lawsuit to seek justice and address the harm inflicted on the company and its users.
The lawsuit also references a strategy discussed by GARM to block conservative news outlets, urging members to leverage news ranking organizations to label these outlets as sources of misinformation. This tactic allegedly included threats to platforms like Spotify over content from prominent figures such as Joe Rogan.
Rumble, a video-sharing platform, has joined X Corp in the lawsuit, condemning the coercive market practices of GARM and its members. Rumble’s statement underscores the need for brand safety standards to succeed on their own merits, without the influence of collusion and market power manipulation.
The lawsuit marks a significant escalation in the ongoing battle between X Corp and the advertising industry’s major players. As the case unfolds, it will likely attract significant attention, given its implications for digital advertising practices and the broader debate over free speech and platform neutrality.
