Additional Coverage:
- Elon Musk’s X is suing more advertisers over ad ‘boycott’ (newsbreak.com)
X, formerly Twitter, has expanded its lawsuit against major advertisers, alleging a coordinated boycott designed to cripple its ad revenue. Nestlé, Abbott Laboratories, Colgate, Lego, Pinterest, Tyson Foods, and Shell are the latest companies added to the suit, joining others like CVS, Mars, and Twitch.
The suit, filed in Texas, centers around the now-defunct Global Alliance for Responsible Media (GARM). X alleges GARM, an initiative of the World Federation of Advertisers (WFA), orchestrated the boycott to pressure the platform into stricter content moderation.
X claims the boycott significantly damaged its competitiveness in digital advertising, especially after Musk’s acquisition. The company is seeking substantial damages, alleging antitrust violations.
The lawsuit comes after a significant drop in ad revenue for X following Musk’s takeover and subsequent policy changes. Many advertisers paused spending amid concerns about content moderation and brand safety.
The WFA has previously stated it would fight the lawsuit and is confident it acted within the bounds of competition law. The newly added defendants have not yet commented on the expanded lawsuit. This legal battle unfolds as other platforms, like video site Rumble, are also pursuing similar claims against major advertisers and agencies.
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- Elon Musk’s X is suing more advertisers over ad ‘boycott’ (newsbreak.com)