Elon Musk’s X/Twitter is taking legal action against a group of advertisers and major companies, alleging that they unlawfully conspired to “boycott” the platform. The lawsuit, filed in a Texas court, names food giants Unilever and Mars, private healthcare company CVS Health, renewable energy firm Orsted, and the World Federation of Advertisers (WFA) as defendants.
X claims that this alleged boycott has cost the platform “billions of dollars” in revenue, particularly following Musk’s acquisition of the company in 2022. Advertising revenue reportedly plummeted by more than half in the year after Musk took over, as concerns grew about the platform’s approach to harmful online content.
X’s chief executive, Linda Yaccarino, expressed concern over the impact of the boycott on the company’s ability to thrive in the future, stating that “people are hurt when the marketplace of ideas is constricted.” Musk himself took to Twitter to declare, “We tried being nice for 2 years and got nothing but empty words. Now, it is war.”
Legal experts, however, are skeptical about the lawsuit’s chances of success. Bill Baer, former assistant attorney general for the Department of Justice’s antitrust division, noted that politically motivated boycotts are protected speech under the First Amendment. Christine Bartholomew, an antitrust expert, emphasized the difficulty of proving an actual agreement to boycott among the accused companies.
X is seeking unspecified damages and a court order to prevent any further attempts to conspire against the platform. The lawsuit alleges that the companies withheld advertising spending in adherence to safety standards set by the WFA’s Global Alliance for Responsible Media (Garm), which X claims was a breach of US antitrust laws.
While X argues that it has implemented brand-safety standards comparable to its competitors, critics suggest that the boycott was a statement about the platform’s policies and the brands associated with it. The outcome of this legal battle could have significant implications for the future of online advertising and competition within the digital marketplace.
