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Tuesday, July 16, 2024

Elon Musk Calls For “Criminal Prosecution” of GARM


After the House of Representatives Committee on the Judiciary accused the Global Alliance for Responsible Media (GARM) of colluding with companies to censor conservative voices online, Elon Musk wrote that X “has no choice but to file suit against the perpetrators and collaborators” behind the advertiser boycott.

He even suggested that some states should consider criminal prosecution for those involved in the boycott. 

Elon Musk
The situation stems from allegations that GARM directed advertisers to boycott Twitter shortly after Musk acquired the platform. X’s revenue suffered significantly after Musk’s takeover, with a reported loss of almost 40 percent in the first six months of 2023 compared to the same period in 2022.

The Committee on the Judiciary reported that GARM may be violating the Sherman Act, which "makes unreasonable restraints of trade illegal," including certain cases when "group boycotts and coordinated actions" harm consumers.

GARM allegedly harmed consumers by wielding its "tremendous market power in the advertising industry" and "eliminating a variety of content and viewpoints available to consumers." This allegedly worked to "rob consumers of choices" and "is likely illegal under the antitrust laws," in addition to threatening "fundamental American freedoms," the committee's report said.

According to the report, "the high market share of GARM and its members in advertising campaigns and spending, combined with the direct evidence of demonetizing certain viewpoints to limit consumer choice," allegedly "meet the initial burden of demonstrating harm to consumers."


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