The Global Alliance for Responsible Media (GARM) has announced it will cease operations. This decision followed a lawsuit filed by Elon Musk’s social media company, X, and video-sharing platform Rumble.
GARM, a nonprofit led by the World Federation of Advertisers, faced accusations of orchestrating a boycott against X, leading to their inability to sustain operations financially while engaged in legal battles.
GARM has faced serious accusations from various stakeholders in the digital content and advertising sectors. Allegations against GARM suggest that it operated like an advertising cartel, effectively controlling which creators and news outlets could secure advertising revenue, leading to widespread demonetization.
GARM, initially established with the intention of promoting safer online advertising standards, was criticized for how its actions may have overstepped the bounds of responsible moderation. Critics argue that GARM’s influence wasn’t just about ensuring ethical advertising but extended into selective demonetization, where certain creators and outlets found themselves suddenly cut off from essential advertising dollars. This power to influence who gets monetized and who doesn’t, allegedly put GARM in the position of gatekeeper, deciding the fate of various online entities based on their content and the perceived risk they posed to advertisers.
Stephan Loerke, CEO of the World Federation of Advertisers, expressed his confidence in an email to members that the legal outcomes of the action against the group would vindicate their compliance with competition laws. However, he confirmed the immediate discontinuation of GARM’s activities due to financial constraints, a sentiment previously echoed in reports by Business Insider.
The closure of GARM was met with applause at X, where CEO Linda Yaccarino heralded it as a stride towards fairness in monetization practices across the digital ecosystem. The sentiment was mirrored by the House Judiciary Committee, with spokesman Russell Dye hailing it as a victory for the First Amendment.
The committee, under Republican Representative Jim Jordan, had criticized GARM in a July report for attempting to manipulate online advertising in a manner that disadvantaged certain content and platforms. According to Dye, this resolution is a testament to the effectiveness of Chairman Jordan’s regulatory oversight.
