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The World Federation of Advertisers (WFA) is discontinuing its Global Alliance for Responsible Media (GARM) shortly after X’s owner, Elon Musk, filed an antitrust lawsuit against it in a lesser-known Texas court.
GARM, an initiative backed by the WFA, aims to combat misinformation and harmful content online, supported by some of the world’s largest advertisers. Musk claims that GARM’s actions, which he perceives as a “ban,” have resulted in X losing billions in ad revenue. X’s advertising revenue this year is expected to be significantly lower than the $5 billion reported in 2023.
On Thursday, the WFA informed its members that it would be ceasing GARM operations. CEO Stephan Loerke mentioned in an email that the decision was challenging, emphasizing that GARM is a “not-for-profit organization with limited resources.”
Elon Musk, reportedly the world’s wealthiest individual due to his stake in Tesla, has almost limitless resources, despite facing massive losses from X, which he acquired for an astonishing $40 billion.
X CEO Linda Yaccarino commented: “No small group should have the power to control what gets monetized. This is a crucial recognition and a necessary step forward. I am optimistic that it signals the beginning of a broader reform across the ecosystem.”
The WFA, whose members include companies like CVS Health, Mars, Orsted, and Unilever—all mentioned in X’s lawsuit—now appears weakened and divided. The many experts and consultants who previously dismissed Musk’s actions as futile now seem misguided.
Such assumptions only hold when everyone follows the established rules, but Musk clearly doesn’t.