Following the release of a report by the House of Representatives Committee on the Judiciary, Elon Musk has called for the criminal prosecution of those behind an advertiser boycott on X (formerly Twitter). The report accuses the Global Alliance for Responsible Media (GARM) of collaborating with companies to censor conservative voices.
Musk expressed his views in a post on X, stating that the platform “has no choice but to file suit against the perpetrators and collaborators” of the boycott. Musk’s post has led some users to speculate that he wants legal consequences for brands that decline to advertise on X.
The congressional report alleges that GARM—which is part of the World Federation of Advertisers (WFA), representing approximately 90% of global advertising spend—directed advertisers to boycott X after Musk acquired the platform. The report further claims that this alleged collusion significantly impacted X’s revenue. For instance, Bloomberg reported that X experienced nearly a 40% drop in revenue in the first six months of 2023 compared to the same period in 2022.
Musk has previously taken legal action against other groups he accuses of contributing to the ad boycott, including the Center for Countering Digital Hate and Media Matters for America. However, some suits have already been dismissed or are facing jurisdictional challenges.
Despite these ongoing issues, X recently renewed its membership with GARM, publicly supported by X CEO Linda Yaccarino. The decision could create tension between her and Musk, particularly given his strong stance against GARM.
The House Judiciary Committee’s report suggests that GARM’s actions might violate the Sherman Act, which prohibits unreasonable restraints of trade. The committee alleges GARM’s influence led to reduced consumer choices and could be deemed anticompetitive.
In response, GARM affirmed its cooperation with the House Judiciary Committee and stated that it operates within legal frameworks, emphasizing that its guidelines are voluntary and designed to enhance transparency and competition in ad placements.
The evolving dynamics between Musk, X, and GARM will continue to shape the dialogue on content moderation and advertising practices in the digital media landscape.