Current:Home > Scams'It is war': Elon Musk's X sues ad industry group over 'boycott' of Twitter replacement -StockSource
'It is war': Elon Musk's X sues ad industry group over 'boycott' of Twitter replacement
View
Date:2025-04-13 11:46:07
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! (62)
Related
- Trump suggestion that Egypt, Jordan absorb Palestinians from Gaza draws rejections, confusion
- California enters a contract to make its own affordable insulin
- Miami woman, 18, allegedly tried to hire hitman to kill her 3-year-old son
- Need a consultant? This book argues hiring one might actually damage your institution
- Nearly 400 USAID contract employees laid off in wake of Trump's 'stop work' order
- Titanic Actor Lew Palter Dead at 94
- Biden has big ideas for fixing child care. For now a small workaround will have to do
- Shakira Recalls Being Betrayed by Ex Gerard Piqué While Her Dad Was in ICU
- Stamford Road collision sends motorcyclist flying; driver arrested
- Texas Politicians Aim to Penalize Wind and Solar in Response to Outages. Are Renewables Now Strong Enough to Defend Themselves?
Ranking
- Man can't find second winning lottery ticket, sues over $394 million jackpot, lawsuit says
- Lewis Capaldi Taking Break From Touring Amid Journey With Tourette Syndrome
- Chris Noth Slams Absolute Nonsense Report About Sex and the City Cast After Scandal
- Oppenheimer 70mm film reels are 600 pounds — and reach IMAX's outer limit due to the movie's 3-hour runtime
- Current, future North Carolina governor’s challenge of power
- Shining a Light on Suicide Risk for Wildland Firefighters
- Biden’s Bet on Electric Vehicles Is Drawing Opposition from Republicans Who Fear Liberal Overreach
- Jennifer Lawrence Sets the Record Straight on Liam Hemsworth, Miley Cyrus Cheating Rumors
Recommendation
Warm inflation data keep S&P 500, Dow, Nasdaq under wraps before Fed meeting next week
In Glasgow, COP26 Negotiators Do Little to Cut Emissions, but Allow Oil and Gas Executives to Rest Easy
Producer sues Fox News, alleging she's being set up for blame in $1.6 billion suit
Las Vegas Delta flight cancelled after reports of passengers suffering heat-related illness
San Francisco names street for Associated Press photographer who captured the iconic Iwo Jima photo
It's not just Adderall: The number of drugs in short supply rose by 30% last year
Cardi B Calls Out Offset's Stupid Cheating Allegations
Are you trying to buy a home? Tell us how you're dealing with variable mortgage rates