X Files Antitrust Lawsuit Against GARM and WFA
- X CEO Linda Yaccarino claims that GARM's 'illegal behavior of these organizations and their executives cost X billions of dollars'.
- The antitrust suit filed by X against ad groups alleges significant financial losses due to illegal actions.
- The accusations highlight the potential misconduct and financial impact within the advertising industry.
In a bold move, X CEO Linda Yaccarino announced on Tuesday that the social media platform has initiated an antitrust lawsuit against the Global Alliance for Responsible Media (GARM) and the World Federation of Advertisers (WFA). In a video statement, Yaccarino accused these organizations, along with several GARM members including CVS Health, Mars, Orsted, and Unilever, of orchestrating a “systematic illegal boycott” against X. This lawsuit is rooted in a July report from the U.S. House of Representatives Judiciary Committee, which highlighted coordinated efforts by GARM to demonetize various media platforms and content deemed unfavorable. GARM, established in 2019 by the WFA, aims to tackle the challenges posed by illegal or harmful content on digital platforms. The organization has been particularly vocal about concerns surrounding Elon Musk's acquisition of Twitter, now X. The report suggests that GARM's members engaged in extensive discussions about Musk's takeover, which may have facilitated the boycott against the platform. Musk's response to the allegations was notably aggressive, declaring, “We tried being nice for 2 years and got nothing but empty words. Now, it is war.” His previous comments have also indicated a willingness to confront advertisers who threaten to withdraw support, labeling such actions as blackmail. The lawsuit comes amid a broader governmental crackdown on antitrust practices in the tech industry, highlighted by a recent ruling against Google regarding its search monopoly.