X Files Antitrust Lawsuit Against Advertisers Over Ad Boycott, Elon Musk Says, ‘We Tried Peace for 2 Years, Now It Is War’
Elon Musk-run X platform has reportedly filed an antitrust lawsuit against advertisers, including Unilever, CVS, Mars and Orsted, accusing them of participating in an illegal boycott organised through the World Federation of Advertisers (WFA) initiative called Global Alliance for Responsible Media (GARM).
New Delhi, August 7: Elon Musk-run X platform has reportedly filed an antitrust lawsuit against a group of major advertisers, accusing them of a boycott against the platform. As per reports, companies like Unilever, CVS, Mars, Orsted and other brands conspired to collectively withhold billions of dollars in advertising revenue through a World Federation of Advertisers (WFA) initiative. X Corp. CEO Linda Yaccarino and Elon Musk have both spoken out, emphasising the gravity of the situation.
As per a report of The Verge, X has taken legal action against advertisers for what it views as an "illegal boycott." The lawsuit claims that the Global Alliance for Responsible Media (GARM), an initiative of the WFA, organised the boycott to pressure X into adhering to its safety standards. Despite X's recent positive views about rejoining GARM, the platform now argues that the boycott threatens its ability to thrive in the future. The core of X's lawsuit reportedly revolves around the accusation that advertisers, by joining GARM, agreed to withhold advertising from social platforms not compliant with GARM's safety standards. Elon Musk-Backed PAC Under Investigation by Michigan Secretary of State for Potential Violations.
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Elon Musk shared a post, where he highlighted the issue and said, “ I strongly encourage any company who has been systematically boycotted by advertisers to file a lawsuit. There may also be criminal liability via the RICO Act.” The CEO of X Corp, Linda Yaccarino, posted a video where she talked about a group of companies who organised an illegal boycott against X. She mentioned that X has taken legal action by filing an anti-trust lawsuit against the global alliance for responsible media and the world federation of advertisers. X Shifting Its Headquarters From San Francisco, Elon Musk Says No Choice, Impossible To Operate in the City on the West Coast.
According to multiple reports, GARM is an organisation that represents brands that spend over 90 percent of the total global advertising budget. Most of X's revenue comes from advertising. Elon Musk has been vocal about the boycott, encouraging other companies facing similar actions to file lawsuits. Musk's strong stance reflects the seriousness with which X views the boycott.
(The above story first appeared on LatestLY on Aug 07, 2024 08:53 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).