Elon Musk’s X/Twitter is taking on a group of major companies in a legal battle, alleging that they conspired to boycott the platform and cost it billions in advertising revenue. The lawsuit targets Unilever, Mars, CVS Health, Orsted, and the World Federation of Advertisers (WFA) for allegedly withholding spending on ads due to concerns about harmful online content.
The lawsuit stems from a period in 2022 after Elon Musk acquired X, formerly known as Twitter, when advertising revenue plummeted. Some companies were hesitant to advertise on the platform under Musk’s ownership, leading to a significant drop in revenue.
X’s chief executive, Linda Yaccarino, emphasized the importance of a diverse marketplace of ideas and criticized the alleged boycott, stating that no small group should control what content gets monetized. Musk himself took to Twitter to declare war on the companies, claiming that they had been unresponsive to previous attempts at reconciliation.
The accused companies and the WFA have yet to respond to the allegations. X’s lawsuit argues that the companies violated US antitrust laws by following safety standards set by the WFA’s Global Alliance for Responsible Media (Garm), which aims to address harmful content on digital platforms.
Legal experts have expressed skepticism about the lawsuit’s chances of success, citing First Amendment protections for politically motivated boycotts. However, X is seeking damages and a court order to prevent further attempts to withhold advertising spending.
The lawsuit highlights the ongoing challenges faced by social media platforms in balancing free speech with brand safety concerns. As the legal battle unfolds, the outcome could have significant implications for the advertising industry and the regulation of online content.
