Current:Home > Invest'It is war': Elon Musk's X sues ad industry group over 'boycott' of Twitter replacement -Capital Dream Guides
'It is war': Elon Musk's X sues ad industry group over 'boycott' of Twitter replacement
View
Date:2025-04-13 06:19:33
Elon Musk’s social media company X, formerly known as Twitter, has filed a lawsuit against a group of advertisers, accusing them of violating antitrust laws while boycotting the platform.
Filed on Tuesday in the United States District Court for the District of Northern Texas, the lawsuit alleges that the Global Alliance for Responsible Media (GARM), “conspired” to “collectively withhold billions in advertising revenue” from the company. Among those brands specifically cited in the lawsuit are CVS, Unilever, Mars, and Danish renewable energy company Orsted.
GARM is an initiative under the World Federation of Advertisers, that works to works to help brands avoid advertising alongside illegal or harmful content.
The boycotts, which included dozens of companies along with those specifically named in the lawsuit, stemmed from concerns that what was then known as Twitter did not properly adhere to GARM’s content safety standards.
The lawsuit alleges, however, that these boycotts were a violation of antitrust laws, calling them a “coercive exercise of market power by advertisers acting to collectively promote their own economic interests through commercial restraints at the expense of social media platforms and their users.”
X executives respond
Linda Yaccarino, the chief executive officer of X, penned an open letter on Tuesday, alleging that the boycotts had cost the company billions of dollars in revenue.
“To put it simply, people are hurt when the marketplace of ideas is undermined and some viewpoints are not funded over others as part of an illegal boycott,” Yaccarino wrote.
Musk was somewhat blunter in his own Tuesday statement, saying on X, “We tried peace for 2 years, now it is war.”
According to the lawsuit, the boycotts began in November 2022, shortly after Musk acquired the company, and were due to concerns that Musk’s pledges to loosen content restrictions would leave the platform no longer compliant with GARM’s standards.
While lawsuit alleges that the company has subsequently applied brand safety standards that are comparable to those of GARM, the boycotts have continued.
A longstanding contentious relationship
The social media giant has had a contentious relationship with advertisers over content moderation since Musk acquired the company in 2022.
When speaking at the New York Times DealBook summit last November, shortly after several major companies including Apple, IBM and Walt Disney had pulled ads from X after Musk called an antisemitic post on the platform “the actual truth,” Musk lashed out, calling the advertising boycott “blackmail” and repeatedly telling those advertisers to “(expletive) yourself.”
In July 2023, X Corp. filed a lawsuit against the Center for Countering Digital Hate, a non-profit that published reports on hate speech on the platform, alleging that they were damaging to the business interests of the company.
That lawsuit was dismissed by a judge in March.
X Corp. also sued media watchdog group Media Matters in November, 2023, claiming that the group’s report showing advertisements appearing next to posts on X that praised Adolf Hitler and the Nazi party were misleading and defaming. That lawsuit is set to head to trial in April, 2025.
Max Hauptman is a Trending Reporter for USA TODAY. He can be reached at [email protected]
veryGood! (2)
Related
- The White House is cracking down on overdraft fees
- Cyclist in Washington state sustains injuries after a cougar ‘latched onto’ her
- Community remembers Sam Knopp, the student killed at a university dorm in Colorado
- Jason Carter on Jimmy Carter's strength of spirit
- 'Survivor' 47 finale, part one recap: 2 players were sent home. Who's left in the game?
- Biden raised $42 million in January, his campaign says
- Cyclist in Washington state sustains injuries after a cougar ‘latched onto’ her
- Will Friedle, Rider Strong allege grooming by 'Boy Meets World' guest star Brian Peck
- The Grammy nominee you need to hear: Esperanza Spalding
- U.S. military reports 1st Houthi unmanned underwater vessel in Red Sea
Ranking
- Israel lets Palestinians go back to northern Gaza for first time in over a year as cease
- 4 candidates run in Georgia House election to replace Richard Smith, who died
- Olivia Culpo and Fiancé Christian McCaffrey Vacation in Mexico After Super Bowl Loss
- Breast implants, pets, private jets: some surprising tax deductions people have taken
- Trump wants to turn the clock on daylight saving time
- Air Canada chatbot costs airline discount it wrongly offered customer
- Caitlin Clark is astonishing. But no one is better than USC's Cheryl Miller.
- Two suspects arrested after children's bodies found in Colorado storage unit, suitcase
Recommendation
North Carolina trustees approve Bill Belichick’s deal ahead of introductory news conference
Horoscopes Today, February 19, 2024
New Jersey gov’s wife, a US Senate candidate, opposes power plant that he could kill
Two suspects arrested after children's bodies found in Colorado storage unit, suitcase
FACT FOCUS: Inspector general’s Jan. 6 report misrepresented as proof of FBI setup
Ukrainians' fight for survival entering its third year
Unruly high school asks Massachusetts National Guard to restore order
Republican dissenters sink a GOP ‘flat’ tax plan in Kansas by upholding the governor’s veto