Ad Group Shuts Down After Being Sued by Elon Musk’s Company

A group of advertisers is shutting down due to a lawsuit from Elon Musk’s X Corp.

“Today we announce that GARM will discontinue its activities,” the World Federation of Advertisers said on Aug. 9.

The federation runs the Global Alliance for Responsible Media (GARM), which includes major corporations such as Mastercard and Unilever. It said it has allowed advertisers to avoid having their ads run next to illegal or harmful content.

X in a suit on Aug. 6 said that GARM conspired with dozens of companies to withhold money from the company, which was formerly known as Twitter.

After Musk acquired X in 2022, companies asked GARM about a possible boycott, according to the suit. “GARM conveyed to its members its concerns about Twitter’s compliance with GARM’s standards, triggering the massive advertiser boycott that followed,” it stated.

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