WASHINGTON—In response to the lawsuit filed by X against the Global Alliance for Responsible Media, the Information Technology and Innovation Foundation (ITIF), a leading think tank for science and technology policy, released a statement from Vice President Daniel Castro.
"The recent lawsuit filed by X against advertisers represents a fundamental misunderstanding of both business practices and legal standards. The action taken by X, which targets companies who have chosen not to advertise on the platform, is fundamentally flawed."
Castro emphasized that businesses have the right to make independent decisions about their advertising budgets based on various factors, including brand safety and alignment with their values. "There is nothing illegal about companies deciding to refrain from advertising on a particular platform," he stated. "X’s attempt to challenge these decisions through litigation undermines the basic principle of free market competition and the autonomy of businesses to manage their reputations."
He further noted that companies are entitled to collaborate on setting advertising standards to protect their brands from harmful content. According to Castro, "The Global Alliance for Responsible Media (GARM) does not mandate any specific advertising practices, nor does it prohibit companies from making their own choices about where to place their ads." He added that such cross-industry collaboration can result in voluntary industry standards and guidelines that benefit both advertisers and platforms.
Castro pointed out that concerns leading many mainstream companies to reconsider their advertising strategies on X are valid. Following incidents like the Christchurch shooting, businesses have become more aware of how their ads are positioned relative to potentially harmful content. Their cautious approach is seen as a reasonable measure for ensuring brand safety.
"In short," Castro concluded, "X's lawsuit against advertisers is a misguided attempt to undermine legitimate business decisions and market practices by claiming an illegal restraint on trade." He advised state attorneys general and other policymakers considering similar lawsuits not to weaponize antitrust claims against advertisers who make reasonable business decisions regarding platform choice.
Contact: Nicole Hinojosa, [email protected]
