X (formerly Twitter), opened legal proceedings against a group of large advertisers this Tuesday (6). The platform claims that the Global Alliance for Responsible Media (GARM), an entity comprising brands such as Adidas, Dell, Electronic Arts, McDonald's, Nike, Mastercard, and Coca-Cola, is boycotting the social network illegally.
In an open letter to advertisers, X CEO Linda Yaccarino spoke out. "I read the report titled 'Harms of GARM' from the United States House Judiciary Committee last month. The report revealed that the investigation uncovered evidence of an illegal boycott against several companies, including X," she said.
| In her view, the
group's objective is to deprive X users of access to the social network,
threatening the company's long-term sustainability. "To put it simply,
people are harmed if the marketplace of ideas is undermined and some views go
unfunded compared to others as part of an illegal boycott," she said. |
— Linda Yaccarino (@lindayaX) August 6, 2024
The report Yaccarino mentioned was published on July 10 of this year. In the document, US regulators mentioned that the widespread decision not to run advertising on "disadvantaged content" was "alarming."
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Currently, GARM is made up of dozens of companies, including YouTube, Disney, Meta, American Express, Mastercard, Microsoft, and X itself. The group determines security standards that advertising portals must follow.
♦ Shot in the dark
X's legal action, however, may not generate anything. The First Amendment to the North American Constitution guarantees that companies can choose which vehicles or products they want to advertise.
In a post on X,
Elon Musk, owner of X, encouraged other companies affected by the
"systematic boycott" to also take legal action against the leading
advertisers.
I strongly encourage any company who has been systematically boycotted by advertisers to file a lawsuit.
— Elon Musk (@elonmusk) August 6, 2024
There may also be criminal liability via the RICO Act.
Yaccarino also made
a public statement aimed at X users. In the video, the executive mentions that
the boycott threatens the social network's future — all in a very formal and
robotic way.
A Message to X Users pic.twitter.com/6bZOYPhWVa
— Linda Yaccarino (@lindayaX) August 6, 2024
♦ You have just received a little process
In a republication
of Yaccarino's open letter, Musk mentions that "now it's war" against
advertisers.