New Delhi, August 9: Elon Musk's X and Rumble have filed lawsuits against the World Federation of Advertisers over an ad boycott, which has reportedly led to the shutdown of the GARM initiative. The unexpected twist has left many wondering about the implications for advertisers and the future of X.

Global Alliance for Responsible Media (GARM), a not-for-profit initiative within the World Federation of Advertisers (WFA), aimed to help brands avoid advertising alongside harmful content. However, the legal challenges posed by X have reportedly led to its shutdown. X Files Antitrust Lawsuit Against Advertisers Over Ad Boycott, Elon Musk Says, ‘We Tried Peace for 2 Years, Now It Is War’.

As per a report of Business Insider, GARM is discontinuing its activities after Elon Musk's X filed an antitrust lawsuit against it. The lawsuit reportedly claimed that major advertisers, including Unilever, Mars and CVS Health, unlawfully conspired to withhold billions of dollars in advertising revenue from X. GARM doesn’t have the funds to fight Musk and continue its work, according to a report of The Verge. However, the WFA is still to issue an official statement.

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X Corp. had filed an anti-trust lawsuit against the GARM and WFA. X CEO Linda Yaccarino also had expressed that no small group should monopolise what gets monetised. She further emphasised that people are hurt when the marketplace of ideas is constricted. The lawsuit has also seen support from other platforms like Rumble, which filed a similar lawsuit against Ad group. X Relaunches Enhanced Long Video UI With New Features on iOS; Check Details.

As per multiple reports, a committee in the US Congress conducted a hearing in July regarding "collusion in the Global Alliance for Responsible Media." The focus of the hearing was reportedly on advertising companies and their alleged involvement in anti-competitive practices in online advertising. It remains to be seen how advertisers will navigate through this situation and what reforms might emerge from this legal battle.

(The above story first appeared on LatestLY on Aug 09, 2024 06:16 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).