Elon Musk’s X Sues Over ‘Illegal’ Ad Boycott Costing Billions

Photo : REUTERS

Elon Musk’s X Corp. has filed a lawsuit accusing the Global Alliance for Responsible Media (GARM) of violating antitrust laws through an advertiser boycott that cost the company billions. The lawsuit, lodged on Tuesday in a federal court in Texas, claims that GARM orchestrated the boycott in 2022 under the pretense of "brand safety" concerns about X, formerly Twitter, following Musk’s $44 billion acquisition of the platform.

Linda Yaccarino, X’s CEO, criticized the boycott in a platform post, stating, “People are hurt when the marketplace of ideas is undermined, and some viewpoints are not funded over others as part of an illegal boycott.” She added that such actions tarnish the industry and must be stopped.

The controversy began amid backlash over antisemitic content on X, some of which was endorsed by Musk. Major advertisers, including Apple Inc. and Walt Disney Co., withdrew their ads in response, and Musk has opposed government efforts to regulate harmful content on social media.

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The lawsuit follows increasing scrutiny of GARM by House Republicans and conservative media, who have accused the group of antitrust violations and of depriving conservative media outlets of ad revenue. A report from the House Judiciary Committee supported these claims, stating that GARM's actions harmed conservative media.

GARM, which has over 100 members including Procter & Gamble and Unilever, did not immediately respond to requests for comment. The group had previously stated in its 2022 annual report that it worked to establish standards and tools to prevent ads from appearing alongside problematic content.

X’s lawsuit argues that GARM's actions constitute a "naked restraint of trade," alleging that collective action among competing advertisers to enforce brand safety standards undermines competitive processes and consumer interests.

Musk, known for his advocacy of free speech, has faced mixed success in legal battles related to content moderation. Additionally, the video-sharing platform Rumble announced plans to file a similar lawsuit against GARM and the World Federation of Advertisers in Texas federal court.

The case is officially titled X v. World Federation of Advertisers, 7:24-cv-00114, and is being heard in the US District Court for the Northern District of Texas (Wichita Falls).

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