Rumble and X have teamed up to sue a group of advertisers and agencies accused of blocking ad revenue to certain platforms.
By yourNEWS Media Newsroom
Rumble, the video streaming platform, has announced its participation in a lawsuit alongside X, Elon Musk’s social media platform, against a coalition of advertisers and advertising agencies. The lawsuit alleges that these entities conspired to block advertising revenue from reaching specific platforms and content creators, a practice that Rumble and X claim is illegal.
The lawsuit targets the Global Alliance for Responsible Media (GARM), accusing the organization of orchestrating a boycott against platforms like Rumble and X. GARM, which includes members such as Mastercard, Procter & Gamble, and Unilever, is alleged to have engaged in activities aimed at demonetizing and limiting the reach of certain digital content.
In a news release, Rumble stated, “The brand safety standards set by advertisers and their ad agencies should succeed or fail in the marketplace on their own merits and not through the coercive exercise of market power.” The company contends that the alleged collusion among advertisers and agencies has led to unfair market practices, disadvantaging certain platforms and content creators.
X’s CEO, Linda Yaccarino, confirmed the legal action in an open letter to advertisers, emphasizing the detrimental impact of GARM’s actions on the platform’s revenue. “This is not a decision we took lightly, but it is a direct consequence of their actions. The illegal behavior of these organizations and their executives cost X billions of dollars,” Yaccarino wrote. She reiterated her commitment to building a dynamic and safe environment where brands and advertisers can thrive.
The lawsuit follows a recent investigation by the House Judiciary Committee, which found evidence suggesting that GARM had organized boycotts and used indirect tactics to target disfavored platforms and content creators. The committee’s hearing, featuring testimony from commentator Ben Shapiro, is part of a broader effort to determine whether existing U.S. laws are sufficient to deter anti-competitive practices in online advertising.
Elon Musk has been vocal about his dissatisfaction with certain advertisers since acquiring X. In a recent statement, Musk described his interactions with advertisers as “a war” and criticized their efforts to control content on the platform. Musk’s contentious relationship with advertisers has been well-documented, with previous incidents highlighting his frustration over perceived attempts to “blackmail” him by withdrawing advertising.
GARM and its members have not yet responded publicly to the lawsuit. However, in response to the House Judiciary Committee’s allegations, GARM issued a statement asserting that the committee’s report did not fully capture their adherence to competition laws and their voluntary, non-binding nature.
“We remain steadfast in the conviction that GARM enhances transparency in previously opaque practices relative to ad placements in digital social media,” GARM stated.
The lawsuit by Rumble and X is expected to bring significant attention to the practices of advertisers and ad agencies, potentially leading to increased scrutiny and calls for regulatory reforms. As the legal battle unfolds, the focus will be on ensuring a fair and competitive digital advertising market that allows all platforms and content creators to compete on equal footing.