A Lawsuit Born Out of Alleged Boycott
Elon Musk’s social media platform X has filed an antitrust lawsuit against the World Federation of Advertisers and four member companies, claiming that a “massive advertiser boycott” resulted in lost revenue. The lawsuit alleges that the brand safety initiative, Global Alliance for Responsible Media, helped coordinate a pause in advertising after Musk’s Twitter takeover.
The Background: A Year-Long Dispute
The lawsuit centers on the early days of Musk’s Twitter takeover and not a recent dispute with advertisers. In November 2023, several advertisers began fleeing X due to concerns about their ads appearing next to pro-Nazi content and hate speech. Musk’s own posts, including an endorsement of an antisemitic conspiracy theory, fueled tensions.
The Lawsuit’s Allegations
X CEO Linda Yaccarino claims that the evidence uncovered by the US House Judiciary Committee shows a “group of companies” organized a systematic illegal boycott against X. The lawsuit accuses the advertisers of conspiring to boycott X, threatening the company’s ability to thrive in the future.
The Response
The World Federation of Advertisers and representatives for CVS, Orsted, Mars, and Unilever have not yet responded to requests for comment. Unilever’s president, Herrish Patel, defended the company’s practice of choosing platforms that won’t harm its brand at a recent congressional hearing. “Unilever, and Unilever alone, controls our advertising spending,” Patel said.
SOURCE: Ref Image from New York Magazine
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