Elon Musk’s X filed a shocking antitrust lawsuit on Tuesday against the left-leaning advertising cartel and several of its member companies for targeting the site in an illegal advertising boycott.
In an open letter to advertisers, X CEO Linda Yaccarino said the lawsuit targets the Global Alliance for Responsible Media, its parent company the World Federation of Advertisers (WFA), and GARM members CVS Health, Mars, Orsted and Unilever.
The lawsuit comes on the heels of a scathing report by the House Judiciary Committee that accused GARM and its members of coordinating efforts to stifle free speech online and restrict advertising at numerous news outlets, including The Washington Post.
The lawsuit, filed in federal court in Texas, seeks triple damages and an injunction, according to a copy of the complaint seen by The Washington Post.
“Simply put, the marketplace of ideas is eroded and people are hurt when some views are less funded than others as part of an illegal boycott,” Yaccarino said. “This behavior is a stain on a great industry and cannot be allowed to continue.”
“This is a decision we did not take lightly, but it is a direct consequence of their actions,” Yaccarino added. “The misconduct of these organizations and their executives has caused $X billion in damages.”
The Global Alliance for Responsible Media (GARM) is an initiative of the World Federation of Advertisers, which represents dozens of the world’s largest corporations and advertising organisations, including Disney and Coca-Cola.
According to a House Judiciary Committee report, its members control 90% of the world’s marketing spending, amounting to approximately $1 trillion per year.
“This lawsuit isn’t just about damages. We must repair the broken ecosystem that allows this illegal activity to occur,” Yaccarino added.
Much of the House committee’s investigation has been aimed at GARM’s far-left boss, Robert Rakowitz, after lawmakers obtained internal emails in which Rakowitz boasted that X was “missing revenue projections by 80%” after GARM targeted Musk over brand safety issues.
Rakowitz later claimed the email was written as a “humble joke.”
The House committee’s investigation focused on whether GARM and its members violated Section 1 of the Sherman Antitrust Act, which provides for unlawful restraint of trade.
A source previously told The Washington Post that the committee was considering whether to formally refer the matter to the Justice Department.
GARM has been accused of stealing advertising dollars from a number of other right-wing media outlets, including Fox News and comedian Joe Rogan’s podcast, “The Joe Rogan Experience.”
GARM has disputed those allegations, with a spokesman previously saying the commission’s allegations of anti-competitive behaviour were “without merit.”
As The Washington Post reported last week, the House Judiciary Committee sent letters to more than 40 major companies requesting more information about whether they conspired to cut funding to news outlets and platforms that endorse political views opposed to their own.
Companies including Adidas, American Express, Bayer, BP, Carhartt, Chanel, CVS and General Motors received letters demanding they preserve documents and provide information related to their dealings with GARM.
“The Committee has learned of collusive activities taking place within the Global Alliance for Responsible Media, of which your company is a member,” the letter begins.
“In particular, the Committee found evidence of coordinated action by GARM and its member companies, including boycotts of objectionable social media platforms, podcasts, and news media,” the letter added.
At least two Republican state attorneys general are known to be reviewing the evidence uncovered in the House report and considering possible legal action against members of the conspiracy.
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