X Considers Suing Advertisers for Halting Spending

Elon Musk, the owner of X, is planning to take legal action to address what he sees as a coordinated effort to restrict free speech on the platform. This move comes as a result of advertisers allegedly withholding ad spend from X due to concerns over the platform's content moderation policies. Musk claims that a cartel of advertisers is colluding to control what is and is not allowed on social media platforms, and that this is having a significant impact on X's ad revenue.

The system in question is the Global Alliance for Responsible Media (GARM), a cross-industry initiative established by the World Federation of Advertisers to address the challenge of harmful content on digital media platforms and its monetization via advertising. Launched in 2019, GARM aims to establish an industry-wide common framework of definitions to drive transparency, consistency, and control in the placement of ads online. However, Musk and others claim that GARM's guidelines are biased and are being used to censor certain types of speech.

According to online commentator Ben Shapiro, who recently testified before Congress, GARM acts as a cartel, with its members accounting for 90% of ad spending in the United States. Shapiro claims that GARM's rulings aim to quash certain narratives, particularly conservative speech, and that this is having a disproportionate impact on platforms like X. Musk's legal team is now building a case to address this perceived effort to censor speech, which could have significant implications for the future of online advertising.

While it remains to be seen how this legal action will play out, it's clear that Musk is committed to protecting free speech on X. However, with ad revenue still down 50% on what it was before Musk purchased the app, the platform is facing significant financial challenges. Musk has cut costs significantly, but the loans he took out to purchase the app have also saddled the X project with debt. It's unclear how this legal action will impact X's financial situation, but it's clear that Musk is willing to fight to protect his vision for the platform.

In the meantime, as the social media landscape continues to evolve, it's more important than ever for businesses to have a solid social media strategy in place. At Great SMM, we offer a range of SMM services, including likes, followers, and comments, to help businesses like yours succeed online. Whether you're looking to boost your brand's online presence or simply stay ahead of the competition, our smm panel can help. With our expertise and guidance, you can rest assured that your social media strategy is in good hands. Shop with us today and take your social media to the next level!