Elon Musk’s X, formerly known as Twitter, has initiated legal proceedings against several major companies, alleging that they unlawfully conspired to boycott the social media platform.
The lawsuit specifically targets food industry giants Unilever and Mars, healthcare company CVS Health, renewable energy firm Orsted, and the World Federation of Advertisers (WFA). X accuses these entities of causing billions of dollars in lost advertising revenue.
The period in question is 2022, shortly after Musk’s acquisition of Twitter, when the platform experienced a significant drop in advertising revenue. During this time, many companies were hesitant to advertise on the platform due to concerns over Musk’s commitment to removing harmful online content.
Linda Yaccarino, CEO of X, stated, “People are hurt when the marketplace of ideas is constricted. No small group of people should monopolize what gets monetized.”
Elon Musk also expressed his frustration on social media, tweeting, “We tried being nice for 2 years and got nothing but empty words. Now, it is war.”
The WFA and the companies named in the lawsuit have not yet responded to requests for comment.
In the year following Musk’s acquisition, X’s advertising revenue dropped by over 50%, as advertisers avoided the platform. The lawsuit claims that the accused companies unjustly withheld their advertising spending by adhering to safety standards set by a WFA initiative known as the Global Alliance for Responsible Media (GARM). GARM aims to address the challenge of illegal or harmful content on digital media platforms and its monetization via advertising.
X argues that the companies, by following GARM’s guidelines, acted against their own economic interests in a conspiracy against the platform, thereby violating US antitrust laws.
