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Elon Musk & X have filed a lawsuit against advertisers he claimed colluded to boycott the social media platform.
According to reports, tech billionaire Elon Musk and the parent company of the social media platform X, formerly Twitter filed a lawsuit in a Texas federal court against the World Federation of Advertisers claiming these companies colluded to boycott the platform. The suit also names other companies such as Mars, Unilever, CVS, and Dutch clean energy firm Orsted. “This is an antitrust action relating to a group boycott by competing advertisers of one of the most popular social media platforms in the United States,” the suit reads.
X CEO Linda Yaccarino informed subscribers of the lawsuit in a video and letter posted to X, formerly Twitter, stating that the advertisers were harming “the marketplace of ideas” with their actions. The suit also named the Global Alliance for Responsible Media, or GARM as a defendant claiming they were “discontinuing entirely or substantially reducing their previously substantial advertising purchases.” The company seeks a jury trial and unspecified damages, alleging the boycott is still ongoing. “By sharply curtailing its revenues, the boycott has reduced X’s ability to invest in new or improved functionality, thus harming the consumers who use X’s platform.”
The lawsuit comes after an investigation was initiated by the Republican-led House Judiciary Committee last month, which heard testimony from those companies involved. “The extent to which GARM has organized its trade association and coordinates actions that rob consumers of choices is likely illegal under the antitrust laws and threatens fundamental American freedoms,” its report read. Musk infamously told advertisers at the DealBook Summit last November who had begun to withdraw after his acquisition of X in 2022 to leave, saying: “Somebody’s going to try to blackmail me with advertising?! Blackmail me with money? Go f–k yourself. Go. F–k. Yourself. Is that clear? I hope it is.” Companies cited the rise of racist and anti-Semitic content on the platform as a major reason for their exit.