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GARM closes down after facing antitrust lawsuit from brand safety organization

The Global Alliance for Responsible Media (GARM) was a not-for-profit division of the World Federation of Advertisers (WFA) that focused on implementing digital brand safety standards. However, the organization recently announced its closure following an antitrust lawsuit filed against it by Elon Musk’s X, formerly known as Twitter. The lawsuit alleged that GARM used coercive market power to enforce a large advertiser boycott of X, which the platform has struggled to recover from. This sudden closure of GARM has raised concerns among brand safety advocates.

GARM was established in 2019 by the WFA in response to the Christchurch New Zealand Mosque shootings that were live-streamed on Facebook, highlighting a significant failure in social media oversight. The organization included top-spending marketers such as Unilever, Mars, Orsted, and CVS Health. Members of GARM were also named in the lawsuit filed by X, which ultimately led to the organization’s shutdown.

The antitrust allegations made by X against GARM have sparked controversy within the industry. While the lawsuit was met with mockery on social media, it proved to be a fatal blow to GARM, which cited the distraction and financial strain caused by the legal battle as reasons for its closure. The WFA, however, has stated its intention to fight X’s allegations in court.

GARM claimed to have reduced the number of ads running around harmful content from 6.1% in 2020 to 1.7% in 2023, offering tools such as a Brand Safety Floor and Adjacency Standards Framework. X’s lawsuit alleged that GARM members colluded in a boycott of its platform following Musk’s takeover, leading to ongoing repercussions for the business. Despite adopting brand safety standards aligned with competitors, X has continued to face challenges in regaining advertiser trust.

The closure of GARM has broader implications for the advertising industry, particularly in relation to brand safety and online content moderation. The House Judiciary Committee report, which criticized GARM’s treatment of conservative publishers, further intensified scrutiny on the organization. Musk’s contentious relationship with advertisers and his efforts to win back spending on X have also played a role in this ongoing saga.

Overall, the closure of GARM marks a significant moment in the ongoing debate surrounding brand safety and digital advertising practices. The outcome of X’s lawsuit and the implications for the advertising ecosystem remain to be seen, but it is clear that this development has sparked important conversations about accountability and responsibility in the industry.

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