Current:Home > Stocks'It is war': Elon Musk's X sues ad industry group over 'boycott' of Twitter replacement -Secure Growth Solutions
'It is war': Elon Musk's X sues ad industry group over 'boycott' of Twitter replacement
View
Date:2025-04-11 18:55:04
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! (4)
Related
- Judge says Mexican ex-official tried to bribe inmates in a bid for new US drug trial
- Pizza Hut displays giant pizza on the Las Vegas Exosphere to promote $7 Deal Lover’s Menu
- Black Friday deals start early and seem endless. Are there actually any good deals?
- Slovakia’s new government led by populist Robert Fico wins a mandatory confidence vote
- US auto safety agency seeks information from Tesla on fatal Cybertruck crash and fire in Texas
- Video chats and maqlooba: How one immigrant family created their own Thanksgiving traditions
- Tom Brady decries NFL's quality of play: 'A lot of mediocrity'
- Italy tribunal sentences 207 'ndrangheta crime syndicate members to a combined 2,100 years in prison
- Beware of giant spiders: Thousands of tarantulas to emerge in 3 states for mating season
- Property dispute in Colorado leaves 3 dead, 1 critically wounded and suspect on the run
Ranking
- FACT FOCUS: Inspector general’s Jan. 6 report misrepresented as proof of FBI setup
- US, UK and Norway urge South Sudan to pull troops from oil-rich region of Abyei amid violence
- Stock market today: Asian shares trading mixed after Wall Street rally led by Microsoft gains
- 4 out of 5 Mexicans who got a flu shot this year turned down Cuban and Russian COVID-19 vaccines
- Residents in Alaska capital clean up swamped homes after an ice dam burst and unleashed a flood
- Bishop Carlton Pearson, former evangelist and subject of Netflix's 'Come Sunday', dead at 70
- Federal judge says Pennsylvania mail-in ballots should still count if dated incorrectly
- Teachers in Portland, Oregon, march and temporarily block bridge in third week of strike
Recommendation
A steeplechase record at the 2024 Paris Olympics. Then a proposal. (He said yes.)
Authorities responding to landslide along Alaska highway
NFL fans are rooting for Taylor and Travis, but mostly they're rooting for football
Oscar Pistorius will have another chance at parole on Friday after nearly a decade in prison
'As foretold in the prophecy': Elon Musk and internet react as Tesla stock hits $420 all
Live updates | Hamas officials say hostage agreement could be reached soon
World’s largest cryptocurrency exchange to pay over $4 billion in agreement with US, AP source says
4 men found dead in a Denver suburb home