Elon Musk Files Lawsuit Against Unilever, Mars, and Others Over X 'Boycott'
Elon Musk’s social media platform, X (formerly Twitter), has taken legal action against several major corporations, accusing them of unlawfully conspiring to boycott the site. The lawsuit targets food industry giants Unilever and Mars, healthcare provider CVS Health, and renewable energy firm Orsted, along with the World Federation of Advertisers (WFA). X claims these entities collectively deprived it of billions in advertising revenue.
The conflict dates back to 2022, shortly after Musk acquired Twitter, when the platform experienced a significant drop in advertising revenue. Concerns arose among advertisers about Musk’s commitment to addressing harmful online content, leading some to pull their ads.
X’s CEO, Linda Yaccarino, remarked, “When the marketplace of ideas is restricted, people suffer. No small group should dominate what gets monetized.” Musk himself tweeted, “We tried being nice for 2 years and got nothing but empty words. Now, it is war.”
Neither the WFA nor the accused companies have responded to requests for comment.
Addressing Harmful Content and Financial Struggles
Advertising revenue for X plummeted by more than 50% in the year following Musk’s takeover, as many advertisers distanced themselves from the platform. The lawsuit claims that the accused companies, by adhering to the Global Alliance for Responsible Media (Garm) standards set by the WFA, acted against their own financial interests and conspired against X, violating US antitrust laws.
Garm’s mission is to help the industry tackle illegal or harmful content on digital platforms and prevent its monetization through advertising. X argues that by following these guidelines, the companies engaged in an unlawful boycott.
Bill Baer, former assistant attorney general for the Department of Justice’s antitrust division, expressed skepticism about the lawsuit’s chances, stating, “A politically motivated boycott is not an antitrust violation. It is protected speech under our First Amendment.” Vanderbilt University’s Professor Rebecca Haw Allensworth added that the boycott aimed to criticize X’s policies and protect brand image, which is also protected by the First Amendment.
Even if the lawsuit succeeds, X cannot compel companies to advertise on its platform. The social media site seeks unspecified damages and a court order to prevent any continued conspiracies to withhold advertising funds. X claims it has implemented brand-safety standards comparable to its competitors and in line with Garm’s guidelines, yet still faces challenges in the digital advertising market.
In a related incident, Rumble, a video-sharing platform popular with right-wing influencers, filed a similar lawsuit against the World Federation of Advertisers, echoing X’s claims.
