WFA Is Shutting Down GARM After X Lawsuit

  Rassegna Stampa, Social
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GARM, the Global Alliance for Responsible Media, is shutting down due to an antitrust lawsuit being brought against it by Elon Musk and X, as reported by Business Insider.

GARM is a cross-industry initiative established in 2019 by the World Federation of Advertisers (WFA) to help the industry address the challenge of illegal or harmful content on digital media platforms and its monetization through advertising.

​​The WFA told its members today that it was “discontinuing” activities for GARM following the lawsuit filed against the company earlier this week.

In an email to WFA members, according to Business Insider, CEO Stephan Loerke said the decision was “not made lightly,” but since GARM is a not-for-profit organization it has limited resources and would not be able to fund itself against the social media giant’s lawsuit.

The WFA will contest the allegations against GARM members, which include CVS, Mars and Unilever, and believes the outcome of the case would “demonstrate our full adherence to competition rules in all our activities.”

The lawsuit had already been a source of much contention in the industry, with media buyers reconsidering their willingness to buy ad space on X, with Musk going into battle mode, saying, “We tried peace for two years, now it’s war” as he reposted CEO Linda Yaccarino’s bizarre video announcing the lawsuit.

In a statement provided to ADWEEK, Claire Atkin, co-founder of adtech watchdog group Check My Ads, said, “Advertisers know a bad ad placement when they see one. The reality is today’s decision means even more advertisers will flee X, and quickly so they’re not targeted in the future.

“Everyone can see that advertising on X is a treacherous business relationship for advertisers,” she added. “And we know, based on public reporting, X doesn’t have all that many too lose.”

There’s no word yet on what will happen to initiatives that began under GARM. Last year, the group and Ad Net Zero unveiled a plan to address media’s climate impact: The GARM Sustainability Action Guide to Reduce Media Greenhouse Gas Emissions.

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