Elon Musk’s X, formerly known as Twitter, is suing several major companies, claiming they wrongfully boycotted the platform and caused a huge loss in advertising revenue.
The companies involved are Unilever, Mars, CVS Health, and Orsted, along with a group called the World Federation of Advertisers (WFA). X alleges these companies colluded to harm its financial interests by pulling their ads.
According to BBC, the lawsuit focuses on the period right after Musk purchased X in 2022 when the platform saw a sharp drop in ad revenue. Some advertisers were concerned that Musk wasn’t doing enough to manage harmful content on the site.
X’s CEO, Linda Yaccarino, said that limiting the variety of voices in advertising is harmful and that no small group should control what gets monetized.
Musk also expressed frustration, stating that their efforts to resolve the issue amicably were unsuccessful, and now legal action is necessary.
The companies and the WFA have not yet commented on the lawsuit. X argues that the companies followed safety guidelines from a WFA initiative called Global Alliance for Responsible Media (GARM), which X claims was used to unfairly avoid spending on its platform.
This, X argues, is a conspiracy that violates US competition laws.
Legal experts, including Bill Baer and Professor Rebecca Haw Allensworth, believe the lawsuit may not succeed, as political boycotts are generally protected by the First Amendment and cannot force companies to advertise if they choose not to.
X is seeking damages and a court order to stop any future boycotts. It also claims it has implemented safety measures comparable to or better than those required by GARM and argues it is becoming less competitive in digital advertising.
Credit : BBC
https://www.bbc.com/news/articles/cn47798gxx4o