Elon Musk’s X filed an antitrust lawsuit against a left-leaning ad cartel and several member companies on Tuesday for allegedly targeting the site with an illegal ad boycott.
In an open letter to advertisers, X CEO Linda Yaccarino said the lawsuit will target the Global Alliance for Responsible Media, its parent firm the World Federation of Advertisers (WFA) and GARM members CVS Health, Mars, Orsted and Unilever.
The lawsuit followed a critical report from the House Judiciary Committee, which accused GARM and its members of coordinating an effort to suppress free speech online and limit advertising in a variety of media outlets — including The Post.
Filed in Texas federal court, the suit seeks trebling compensatory damages and injunctive relief, according to a copy of the first complaint obtained by The Post.
“Put simply, people are hurt when the marketplace of ideas is undermined and some views 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.”
“This is not a decision we took lightly, but it is a direct consequence of their actions,” Yaccarino added. “The illegal behavior of these organizations and their leaders cost them X billion dollars.”
The Global Alliance for Responsible Media, or GARM, is an initiative of the World Federation of Advertisers. The WFA represents dozens of the world’s largest advertising companies and organizations, including Disney and Coca-Cola.
Its members control 90% of global marketing spending, amounting to nearly $1 trillion annually, according to the House Judiciary Committee report.
“This case is about more than damages — we need to fix a broken ecosystem that allows this illegal activity to happen,” Yaccarino added.
Much of the House committee’s scrutiny fell on the head of the far-left GARM, Robert Rakowitz. Lawmakers obtained internal emails, including one in which Rakowitz appeared to boast that X was “80% below revenue projections” after GARM targeted Musk over brand safety issues.
Rakowitz later claimed the email was intended as a “self-indulgent joke.”
The House committee’s investigation focused on whether GARM and its members violated Section 1 of the Sherman Antitrust Act, which governs unlawful restraint of trade.
Sources previously told The Post that the panel was considering whether to make a formal referral to the Justice Department.
GARM has allegedly siphoned advertising dollars away from a number of other right-leaning media outlets, including Fox News and comedian Joe Rogan’s podcast “The Joe Rogan Experience.”
GARM has hit back at the allegations, with a spokesman previously claiming the committee’s allegations of anti-competitive behavior are “baseless”.
As The Post reported last week, the House Judiciary Committee sent letters to more than 40 major companies seeking more information about whether they had colluded to discredit news outlets and platforms that allowed political views they disagreed with. they agreed.
Adidas, American Express, Bayer, BP, Carhartt, Chanel, CVS and General Motors were among the companies that received letters demanding they preserve documents and provide information about their dealings with GARM.
“The committee has learned that covert 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 disadvantaged social media, podcast and media platforms,” ​​the letter added.
At least two Republican attorneys general are known to be reviewing evidence from the House report and weighing possible legal action against members of the cabal.
This is a breaking story. Check back for updates.
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