Musk's X Sues Major Companies Over Ad Boycott
- X has sued major companies for allegedly working against their economic self-interests.
- The companies are accused of being involved in a conspiracy that violates US antitrust law.
- The lawsuit highlights the growing concerns over potential anti-competitive practices in the business world.
Elon Musk’s social media platform, X, has initiated legal action against a global advertising alliance and several prominent companies, including Unilever, Mars, and CVS Health. The lawsuit, filed in federal court in Texas, accuses these entities of conspiring to boycott the platform, which X claims has resulted in significant revenue losses. Musk characterized the situation as a “massive advertiser boycott,” stating, “We tried peace for 2 years, now it is war.” The lawsuit alleges that the defendants, through an initiative by the World Federation of Advertisers known as the Global Alliance for Responsible Media, collectively withheld billions of dollars in advertising revenue from X. X argues that this coordinated effort not only violates U.S. antitrust laws but also goes against the economic interests of the advertisers involved. Linda Yaccarino, X’s CEO, emphasized the detrimental impact of such a boycott on the diversity of ideas shared on the platform. X's advertising revenue has reportedly declined since Musk's acquisition of the company in 2022, as brands have expressed concerns over the rapid changes implemented under his leadership. The Global Alliance for Responsible Media was established in 2019 to tackle issues related to harmful content on digital platforms. X contends that it has adhered to brand-safety standards comparable to its competitors and is seeking unspecified damages along with a court order to prevent further conspiratorial actions against its advertising revenue.