- The Global Alliance for Responsible Media (GARM), a not-for-profit division of the World Federation of Advertisers (WFA) focused on implementing digital brand safety standards, has shut down, based on a WFA press release.
- The sudden closure follows an antitrust lawsuit filed against the group by Elon Musk’s X earlier this week. The suit alleges GARM used coercive market power to implement a big advertiser boycott of X, formerly Twitter, and that the platform hasn’t recovered.
- In its announcement, GARM said that the allegations against it had turn out to be a distraction and “significantly drained its resources and funds.” The shuttering of GARM is a win for Musk and X but a possible blow for brand safety advocates.
GARM, an influential organization that established brand safety guidelines and tools for advertisers seeking to avoid harmful online content, is dead. The group was launched by the WFA, a trade body representing advertisers, in 2019, following the Christchurch New Zealand Mosque shootings that were streamed live to tell the tale Facebook, a moment that was perceived as a large failure in social-media oversight. Members included top-spending marketers like Unilever, Mars, Orsted and CVS Health, that are named within the X lawsuit alongside GARM and the WFA.
X’s antitrust allegations against GARM raised a couple of eyebrows amongst industry watchers — and many mockery on the platform formerly often known as Twitter — but appear to have delivered a fatal blow to the not-for-profit contending with what would likely have been a costly legal battle.
The WFA plans to fight X’s allegations in court, based on an email to members from CEO Stephan Loerke reviewed by Business Insider, which first broke the news of GARM’s shuttering.
GARM claimed to cut back the variety of ads running around harmful content, a designation that features terrorism videos and child pornography, from 6.1% in 2020 to 1.7% in 2023. Offerings from the group included a Brand Safety Floor and Adjacency Standards Framework.
X alleges that GARM members colluded in a large boycott of its platform following Musk’s takeover two years ago. The lawsuit claims X’s business continues to be contending with the fallout, even after adopting brand safety standards in step with competitors. To assuage advertiser concerns, X rejoined GARM originally of July.
GARM has been under sharper scrutiny following a report from the House Judiciary Committee chaired by Rep. Jim Jordan (R-Ohio) published last month that was sharply critical of the initiative, particularly in relation to its treatment of conservative publishers. The X lawsuit references the House Judiciary Committee report.
No small group should have the option to monopolize what gets monetized. This is a very important acknowledgement and a essential step in the appropriate direction. I’m hopeful that it means ecosystem-wide reform is coming. https://t.co/BlHqHqZEyp
— Linda Yaccarino (@lindayaX) August 8, 2024
The GARM closure is a flash point in Musk’s contentious relationship with the promoting community. The mercurial executive, who also runs SpaceX and Tesla, has previously told off advertisers with four-letter words but additionally mounted several charm offensives to attempt to win back spending on X, a site that also relies heavily on ad revenue. While X leaders, including CEO Linda Yaccarino, view GARM’s shuttering as a victory, it’s not clear if the move will help it win back jumpy brands.
X has previously pursued legal motion against nonprofits critical of the way it handles brand safety and hate speech. The company sued the Center for Countering Digital Hate last 12 months in a case that was dismissed and is currently entangled in a lawsuit with Media Matters.
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