Source: Slaven Vlasic/Getty
Elon Musk & X have filed a lawsuit against advertisers it claims colluded to boycott the social media platform.
According References, tech billionaire Elon Musk and social media platform X's parent company, formerly Twitter, filed a lawsuit in Texas federal court against the World Federation of Advertisers alleging that those companies colluded to boycott the platform. The lawsuit also names other companies such as Mars, Unilever, CVS and Dutch clean energy company Orsted. “This is an antitrust action related to a class boycott by competing advertisers of one of the most popular social media platforms in the United States,” the lawsuit states.
X CEO Linda Yaccarino informed subscribers of the lawsuit in a video and letter posted on X, formerly Twitter, saying the advertisers were harming the “marketplace of ideas” with their actions. The lawsuit also named the Global Alliance for Responsible Media, or GARM, as a defendant, alleging that they “completely ceased or substantially reduced their previously significant advertising purchases.” The company is seeking a jury trial and unspecified damages, arguing that the boycott continues. “By sharply limiting its revenue, the boycott reduced X's ability to invest in new or improved features, thereby harming consumers using X's platform.”
The lawsuit comes after one research was launched by the Republican House Judiciary last month, which heard testimony from the companies involved. “The extent to which GARM has organized its trade association and coordinated actions that rob consumers of choice is likely illegal under the antitrust laws and threatens fundamental American freedoms,” its report said. Musk infamously told advertisers at the DealBook Summit last November who had begun to back out after acquiring X in 2022 to get out, saying, “Someone is going to try to blackmail me with ads?! Blackmail me with money? Go argue yourself. I am going. F–k. The same. Is this clear? I hope it is.” The companies cited the rise of racist and anti-Semitic content on the platform as the main reason for their withdrawal.
