Elon Musk’s social media platform X has filed a lawsuit against a global advertising alliance and major companies, including Mars and CVS Health, for allegedly conspiring to boycott the platform, resulting in lost revenue. The lawsuit, filed in federal court in Texas, accuses advertisers of withholding billions of dollars in ad revenue from X, violating US antitrust laws.
X’s CEO, Linda Yaccarino, stated that restricting the marketplace of ideas hurts people and that no small group should monopolize monetization. Musk, in a tweet, declared “war” on advertisers, claiming that they have been ignored for too long.
After Musk’s purchase of X in 2022, advertising revenue slumped as brands were wary of changes under his ownership. The responsible media initiative was launched in 2019 to address harmful content on digital platforms.
Antitrust expert Christine Bartholomew stated that proving an unlawful boycott can be challenging, as X must show an actual agreement by each advertiser. Even if successful, X cannot force companies to spend ad revenue on the platform.
X claims to have applied brand safety standards that are in line with competitors and seek damages and a court order against further efforts to withhold ad dollars. The lawsuit highlights that X has become a less effective competitor in the digital advertising market.
The defendants, including the World Federation of Advertisers, Unilever, Mars, CVS Health, and Orsted, have not commented on the lawsuit. The case brings attention to the complex relationship between social media platforms, advertisers, and regulations governing online content and monetization.
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