Elon Musk Sues Unilever and Mars

WICHITA FALLS, Texas – Elon Musk's social media platform, X, formerly known as Twitter, has initiated a lawsuit against a coalition of advertisers, claiming a “massive advertiser boycott” has cost the company billions in revenue and violated antitrust laws. Filed in a Texas federal court, the lawsuit targets the World Federation of Advertisers and major companies including Unilever, Mars, CVS Health, and Orsted. X alleges that the advertising group's Global Alliance for Responsible Media coordinated a pause in advertising following Musk's acquisition of the platform in late 2022. In a video announcement, X CEO Linda Yaccarino stated that the lawsuit was partly based on evidence from a U.S. House Judiciary Committee investigation, which suggested a systematic boycott against X. The committee recently examined whether existing laws adequately deter anticompetitive behavior in online advertising. The lawsuit focuses on events shortly after Musk's takeover, rather than a subsequent advertiser exodus in late 2023, which was driven by concerns over harmful content on the platform. Legal experts express skepticism about the lawsuit's chances of success, noting that proving collusion among advertisers will be challenging. Following Musk's acquisition, X's advertising revenue reportedly plummeted by over 50%, as many companies hesitated to associate their brands with the platform amid rising concerns about harmful content. Yaccarino emphasized the importance of a free marketplace of ideas, while experts highlighted the difficulty X faces in demonstrating an actual agreement among advertisers to boycott the platform. The World Federation of Advertisers and the accused companies have yet to respond to the lawsuit. Meanwhile, X claims to have implemented brand-safety standards comparable to its competitors, asserting that it meets or exceeds industry expectations.