The Global Alliance for Responsible Media (GARM), a prominent nonprofit in the advertising sector, has announced its closure just days after Elon Musk-owned X filed a lawsuit against the group. The lawsuit accused GARM of illegally conspiring to boycott advertising on the social media platform.
In a statement released Friday, GARM said, "Recent allegations that unfortunately misconstrue its purpose and activities have caused a distraction and significantly drained its resources and finances. GARM therefore is making the difficult decision to discontinue its activities." The organization, which operates under the World Federation of Advertisers, was established to help brands prevent their advertisements from appearing alongside illegal or harmful content.
The shutdown of GARM represents a temporary win for Musk and X CEO Linda Yaccarino, even though a judge has yet to rule on the lawsuit. Yaccarino expressed her support for the development on X, stating, "No small group should be able to monopolize what gets monetized. This is an important acknowledgment and a necessary step in the right direction."
However, the legal action could have unintended consequences for X, as critics argue it may further alienate advertisers. Nandini Jammi and Claire Atkin, founders of the watchdog group Check My Ads Institute, warned that "advertising on X is a treacherous business relationship for advertisers."
The lawsuit alleges that GARM orchestrated a collective effort to withhold billions in advertising from X, citing concerns that the platform had deviated from brand safety standards following Musk's acquisition in late 2022. The suit specifically names four GARM members—CVS, Unilever, Mars, and Ørsted—as defendants.
GARM was created in 2019 in response to the Christchurch Mosque shootings in New Zealand, where a gunman livestreamed the attack on Facebook. The group claimed to have significantly reduced the number of ads appearing next to illegal or harmful content, from 6.1% in 2020 to 1.7% in 2023.
Concerns about brand safety resurfaced when Musk took over X, leading many advertisers to withdraw their spending over fears their ads could be placed alongside misinformation or hate speech. Musk has a history of clashing with advertisers, even telling brands that left the platform to "go f**k yourself" last year.
Despite occasional suggestions that X's ad business was improving, Yaccarino recently admitted that the GARM-led boycott "threatens our ability to thrive in the future," placing the company at "long-term risk."
The dissolution of GARM may raise alarms for other media watchdogs. X has previously sued similar organizations, such as the Center for Countering Digital Hate, which studied and reported on hate speech on the platform. In March, a federal judge dismissed that suit, criticizing it as an attempt to suppress protected speech.
X is also engaged in a legal battle with Media Matters, a progressive watchdog group, over its analysis of antisemitic and pro-Nazi content on the platform—a report that contributed to a significant brand revolt last year. The case is scheduled for trial next year.
