An advertising organization has halted the operations of its brand safety division following an antitrust lawsuit filed by Elon Musk.
Editor Thenews24.net
2 min read
On June 19, 2024, Elon Musk participated in a session titled “Exploring the New Frontiers of Innovation: Mark Read in Conversation with Elon Musk” at the Cannes Lions International Festival Of Creativity in Cannes, France. This event took place just two days after Musk’s social media company, X, filed a lawsuit against a global advertising group, leading to significant developments.
The World Federation of Advertisers (WFA) announced on Thursday that it would suspend its Global Alliance for Responsible Media (GARM), a nonprofit initiative launched in 2019 to help advertisers avoid placing their ads next to harmful content. This decision came after X, formerly known as Twitter, accused the WFA and its members, including Unilever, Mars, and CVS Health, of organizing an illegal ad boycott that hurt X financially.
The lawsuit, filed in the Northern District of Texas, cited previous claims by the Republican-led House Judiciary Committee that GARM’s actions were anticompetitive and potentially illegal under antitrust laws. Russell Dye, a spokesperson for the committee, praised the suspension of GARM as a victory for free speech and the committee’s oversight efforts. X CEO Linda Yaccarino expressed optimism that this move could lead to broader industry reforms.
Following Musk’s $44 billion acquisition of Twitter in 2022, many advertisers halted their campaigns due to concerns from civil rights groups about an increase in hate speech and problematic content on the platform. In a public interview in November, Musk harshly criticized advertisers who paused their spending, accusing them of attempting to blackmail him and threatening to publicly document their actions.
X has also taken legal action against other watchdog organizations like Media Matters and the Center for Countering Digital Hate (CCDH), which reported on the rise of hate speech and inflammatory content on the platform. However, a California judge dismissed X’s lawsuit against the CCDH in March, stating that the case was an attempt to punish the defendants for their speech.
Ruben Schreurs, chief strategy officer at media marketing group Ebiquity, described X’s lawsuit against the WFA as “weaponized litigation” aimed at silencing voices and crippling organizations working to make the internet safer, especially for children. Schreurs noted that brands are caught in a political struggle, with the House Committee alleging that GARM members colluded to demonetize conservative platforms. He predicted that X’s lawsuit against the WFA would likely be dismissed but expressed concern over the aggressive legal tactics being used against advertisers, suggesting they are more politically motivated than based on facts.
In related news, SpaceX, another company led by Musk, announced plans to relocate its headquarters from California to Texas.