Elon Musk‘s social media platform X (formerly Twitter) has expanded its legal battle against major corporations, accusing them of orchestrating an advertising boycott. On Saturday, X’s lawyers filed an amended complaint in federal court in Texas, adding Nestlé, Colgate-Palmolive, Shell, Lego, Pinterest, Tyson Foods, and Abbott Laboratories as new defendants in the ongoing antitrust lawsuit.
The lawsuit, initially filed last year, originally targeted the World Federation of Advertisers (WFA) and several companies, including CVS Health and Twitch. It alleged an illegal conspiracy to withhold advertising revenue from X following Musk’s acquisition of the platform in November 2022. X claims this boycott led to a significant loss of “billions of dollars in advertising revenue.”
The amended complaint alleges that the boycott was coordinated through the Global Alliance for Responsible Media (GARM), an initiative by the WFA. X argues that GARM’s concerns over the platform’s compliance with brand safety standards led to a “massive advertiser boycott” shortly after Musk’s purchase. This, X claims, deprived it of ad revenue and weakened its competitive position in the digital advertising market.
The lawsuit states that at least 18 advertisers part of GARM either stopped or substantially reduced their ad spending on X after Musk’s acquisition, with effects still felt years later. X’s legal team argues that platforms should have the autonomy to set their own brand safety standards without being dictated by advertiser coalitions, which they say undermines competition.
Musk, known for his outspoken approach on social media, had previously told advertisers pulling out of X to “go f— yourself,” signaling a contentious relationship with the advertising industry. Despite this, some companies have returned to advertising on X, possibly influenced by Musk’s growing political influence and his alignment with certain political figures.
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