X Files Lawsuit Against Advertisers

WICHITA FALLS, Texas – Elon Musk's social media platform, X, has initiated a lawsuit against a coalition of advertisers, claiming that a "massive advertiser boycott" has cost the company billions in revenue and breached antitrust laws. The lawsuit, filed in a Texas federal court, targets the World Federation of Advertisers and its members, including Unilever, Mars, CVS Health, and Orsted. X alleges that the group's brand safety initiative, the Global Alliance for Responsible Media, played a role in orchestrating a halt in advertising following Musk's acquisition of Twitter for $44 billion in late 2022. In a post on X, Musk declared, "now it is war," expressing frustration after two years of what he described as "empty words" from advertisers. X CEO Linda Yaccarino stated that the lawsuit is partly based on evidence from the U.S. House Judiciary Committee, which suggested that a coordinated boycott against X was in place. This committee recently examined whether existing laws adequately prevent anticompetitive behavior in online advertising. The lawsuit focuses on events from the early days of Musk's ownership, rather than a more recent exodus of advertisers in November 2023. This later withdrawal was prompted by concerns over ads appearing alongside extremist content and hate speech, exacerbated by Musk's own controversial posts. Musk accused departing advertisers of "blackmail," suggesting they were attempting to manipulate the platform. Representatives from the World Federation of Advertisers and the implicated companies have not yet responded to requests for comment. A Unilever executive previously defended the company's advertising choices, asserting that it alone controls its spending and that no platform is entitled to its advertising dollars.