ITIF - The Information Technology and Innovation Foundation

06/08/2024 | Press release | Distributed by Public on 07/08/2024 06:03

X's Legal Challenge Against Advertisers Is Misguided and Meritless, Says ITIF

WASHINGTON- In response to the lawsuit filed by X against the Global Alliance for Responsible Media, the Information Technology and Innovation Foundation (ITIF), the leading think tank for science and technology policy, released the following 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.There is nothing illegal about companies deciding to refrain from advertising on a particular platform. Businesses have the right to make independent decisions about where to allocate their advertising budgets based on a variety of factors, including brand safety and alignment with their values. 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.Moreover, companies have every right to collaborate on setting advertising standards to ensure their brands are not associated with content that could harm their image. 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. However, this type of cross-industry collaboration can yield voluntary industry standards and guidelines that enable advertisers and platforms to operate more efficiently and better serve their customers.The concerns that led many mainstream companies to reconsider their advertising strategies on X are valid and rooted in genuine business considerations. Following incidents like the Christchurch shooting, companies have a heightened awareness of how their ads are positioned relative to potentially harmful content. Their cautious approach is a reasonable response to ensuring brand safety and a response to perceptions about the relative risks and rewards of advertising on different platforms.In short, X's lawsuit against advertisers is a misguided attempt to undermine legitimate business decisions and market practices by claiming an illegal restraint on trade. While any business is free to have its day in court, state attorneys general and other policymakers considering similar lawsuits should not go down this path of weaponizing antitrust claims against advertisers who make reasonable business decisions to stay off certain platforms.

Contact: Nicole Hinojosa, [email protected]