Elon Musk and Rumble File Antitrust Lawsuit Against GARM

Musk and Rumble Allege Illegal Boycott

Elon Musk has initiated an antitrust lawsuit against the Global Alliance for Responsible Media (GARM), accusing the group of orchestrating an illegal boycott of X, previously known as Twitter. Video hosting platform Rumble has also joined the lawsuit.

Details of the Lawsuit

The lawsuit was filed in Texas this past Tuesday, following the publication of a report by the US House of Representatives’ Judiciary Committee last month. This report presented evidence suggesting that GARM conspired to demonetize and inflict harm on platforms they disapproved of.

Musk and Pavlovski's Statements

Elon Musk expressed his frustration on X, stating, “We tried being nice for 2 years and got nothing but empty words. Now, it is war.” This statement was made in response to a post by Rumble CEO Chris Pavlovski, who announced his decision to join the lawsuit.

X CEO's Open Letter

Linda Yaccarino, X's CEO, addressed an open letter to all users. She stated, “This is not a decision we took lightly, but it is a direct consequence of their actions.” Yaccarino further criticized the actions of GARM and others, calling their behavior a blight on a reputable industry that should not be allowed to persist.

Yaccarino's Claims

Yaccarino claims that X has not only met but surpassed the requests made by GARM and other advertiser groups to enhance controls and increase the effectiveness of their ads. Despite these efforts, she says, many companies chose to ignore the facts. In response, she said, “To those who broke the law, we say enough is enough.”

Defendants and Damages

The lawsuit names GARM, the World Federation of Advertisers, and GARM members CVS Health, Mars, Orsted and Unilever as defendants. It also notes that the list of defendants could be expanded later pending discovery. X is seeking triple the damages as compensation.

GARM's Influence

Last month, the New York Post labeled GARM head Robert Rakowitz as a “fascist creep” and a self-proclaimed “mega-censor of everything people can read.” The publication was censored on multiple platforms in 2020, after publishing a truthful story about Hunter Biden’s laptop that Democrats denounced as “disinformation.”

Further Allegations

According to the House report, GARM is an initiative of the WFA, which represents the world’s largest ad buyers. Its members control 90% of global marketing spending, amounting to almost $1 trillion a year. Documents obtained by lawmakers showed Rakowitz boasting that X was “80% below revenue forecasts” since GARM began targeting it. He defended this statement by claiming the email was intended as a “self-effacing joke.”

External Observations

Some external observers have noted that GARM received funding from the US government and may have been part of the infamous “censorship-industrial complex” revealed by the ‘Twitter Files.’ Mike Benz, a former Trump administration official who now runs the Foundation for Freedom Online, pointed out that USAID “explicitly said it was reaching out to advertisers, doing ‘advertiser outreach’ to organize advertiser boycotts to cut financial support to disfavored websites.”

Bottom Line

This lawsuit marks a significant moment in the ongoing debate about censorship and freedom of speech online. The allegations against GARM, if proven true, could have far-reaching implications for the way online platforms are regulated and monetized. What are your thoughts on this lawsuit? Do you believe it will bring about any significant change? Share your thoughts with your friends and join us for the Daily Briefing every day at 6pm.