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Elon MuskMusk’s pro-Trump transformation of X at Cannes, France, June 19, 2024. The non-profit advertising campaign GARM was dissolved after his X platform sued it.

A major ad industry association is closing days after Elon Musk’s X sued the group for conspiring to boycott his platform’s advertising.

“GARM is a small, not-for-profit initiative, and recent allegations that unfortunately misconstrue its purpose and activities have distracted and significantly drained its resources and finances,” the group said Friday. “GARM is thus making the difficult decision to cease operations.”

The World Federation of Advertisers’ voluntary Global Alliance for Responsible Media (GARM) helps businesses avoid appearing alongside unlawful or harmful content. GARM said it will continue their legal fight.

Musk and X CEO Linda Yaccarino had a temporary triumph when GARM ended, even though a judge hasn’t ruled.

“No small group should monopolize monetization. This recognition is crucial and a positive move. I hope ecosystem-wide reform is coming,” Yaccarino wrote on Thursday.

However, the case may deter other X advertisers. Check My Ads Institute founders Nandini Jammi and Claire Atkin wrote an op-ed on Thursday. “Everyone can see that advertising on X is a treacherous business relationship for advertisers,” they stated.

The lawsuit claims GARM organized “to collectively withhold billions of dollars in advertising from Twitter” following Musk’s late 2022 takeover because it worried the site had violated brand safety guidelines.

GARM has 100+ members. CVS, Unilever, Mars, and Ørsted were named as defendants in a lawsuit filed in Texas federal court on Tuesday.

GARM was founded in 2019 after the Christchurch New Zealand mosque killings, which the perpetrator livestreamed on Facebook. The association stated that after that, corporations encountered challenges with ads with unlawful or dangerous content. According to GARM, such commercials dropped from 6.1% in 2020 to 1.7% in 2023.

When Musk bought X in 2022, the platform’s core ad business tanked, worrying brands. Many firms have canceled their advertising due to fears that they may run alongside misinformation or hate speech, which Musk has championed. Musk has continued to quarrel with advertisers, who provide him with money. Last year, he told firms that left the platform to “go f**k yourself.”

Though X leaders hinted that the company’s ad business was improving, Yaccarino said in a video Monday, “They conspired to boycott X, which threatens our ability to thrive in the future,” adding that the loss of advertising dollars put the company “at long-term risk.”

The closure of GARM may worry other media watchdogs, but a judge agreed with a nonprofit in a similar complaint.

X also sued the Center for Countering Digital Hate, arguing it violated its terms of service by studying and writing about hate speech on the site and driving away advertisers. A federal judge dismissed the action in March, calling it an attempt to punish CCDH for protected expression.

Media Matters was sued by X for its analysis of antisemitic and pro-Nazi content on X, which appeared to play a major role in a big and catastrophic brand revolt late last year. The trial is scheduled for next year.