Elon Musk’s X has filed a bombshell antitrust lawsuit against a shadowy left-wing anti-free speech “ad cartel” for targetting the social media platform with an “illegal” advertising boycott.
In an open letter addressed to advertisers on X, CEO Linda Yaccarino said the lawsuit takes aim at the Global Alliance for Responsible Media (GARM).
GARM is a shadowy group that has come under heavy scrutiny following a damning report by the House Judiciary Committee.
The committee accused GARM and its members of coordinating an effort to suppress online free speech and restrict ads to a slew of news outlets, including Slay News.
The efforts by GARM cause ad revenue to Slay News and other conservative outlets to be massively reduced, making it almost impossible to operate.
Thankfully, THAIMBC News has a loyal reader base that helps to keep the site online by making donations.
GARM’s intention appears to be to force conservative news sites to shut down.
The organization started targeting Twitter, now known as X, after it was bought by Musk who vowed to end the censorship agenda.
“This is not a decision we took lightly, but it is a direct consequence of their actions,” Yaccarino wrote.
“The illegal behavior of these organizations and their executives cost X billions of dollars.”
The suit, filed in Texas, also names GARM parent firm World Federation of Advertisers (WFA) and members that include CVS Health, Mars, Orsted, and Unilever.
“To put it simply, people are hurt when the marketplace of ideas is undermined and some viewpoints are not funded over others as part of an illegal boycott,” Yaccarino said.
“This behavior is a stain on a great industry, and cannot be allowed to continue.”
A Message to X Users pic.twitter.com/6bZOYPhWVa
— Linda Yaccarino (@lindayaX) August 6, 2024
Musk weighed in saying, “We tried peace for 2 years, now it is war.”
We tried peace for 2 years, now it is war https://t.co/elgT62uDtF
— Elon Musk (@elonmusk) August 6, 2024
The lawsuit seeks trebled compensatory damages and injunctive relief, according to the complaint.
GARM, led by radical boss Robert Rakowitz, is an initiative of the WFA, which represents dozens of the world’s largest companies and ad organizations, including the likes of Disney and Coca-Cola.
Its members control 90% of global marketing spending, amounting to nearly $1 trillion per year, according to the House Judiciary Committee’s report.
“This case is about more than damages — we have to fix a broken ecosystem that allows this illegal activity to occur,” Yaccarino added.
Much of the House committee’s scrutiny fell on Rakowitz.
Lawmakers obtained internal emails, including one in which Rakowitz appeared to brag that X was “80% below revenue forecasts” since GARM targeted Musk over his pro-free speech agenda.
Rakowitz later claimed the email was meant as a “self-effacing joke.”
The House committee’s probe focused on whether GARM and its members violated Section 1 of the Sherman Antitrust Act, which governs illegal restraint of trade.
The panel was reportedly considering whether to make an official referral to the Justice Department.
GARM is alleged to have steered ad dollars away from several other right-leaning outlets, including Fox News and comedian Joe Rogan’s podcast “The Joe Rogan Experience.”
The organization has pushed back on the claims, however.
A GARM spokesperson previously asserted that the committee’s allegations of anti-competitive behavior are “unfounded.”
Last week, the House Judiciary Committee sent letters to more than 40 major companies demanding more information about whether they colluded to defund news outlets and platforms that allowed political views with which they disagreed.
Adidas, American Express, Bayer, BP, Carhartt, Chanel, CVS, and General Motors were among the companies that received letters requesting that they preserve documents and provide information related to their dealings with GARM.
“The Committee has learned that collusive activity is occurring within the Global Alliance for Responsible Media, of which your company is a member,” the letter began.
“In particular, the Committee has uncovered evidence of coordinated action by GARM and its member companies, including boycotts of disfavored social media platforms, podcasts, and news outlets,” the letter added.
At least two Republican state attorneys general are known to be examining evidence surfaced by the House report and weighing possible legal action against the cabal’s members.
Everyone who has been boycotted should file a lawsuit in every country they’ve been boycotted https://t.co/TG2nE5LZAk
— Elon Musk (@elonmusk) August 6, 2024
