Elon Musk’s X Files Lawsuit Against Companies for Refusing to Advertise on its Platform

Legal action has been launched by Elon Musk’s X against several companies that ceased advertising on the social network.

The tech giant, previously known as Twitter, claims that these firms unlawfully conspired to boycott the site, resulting in significant revenue losses amounting to “billions of dollars.”

A lawsuit was filed in Texas naming the World Federation of Advertisers and member companies such as Unilever, Mars, CVS Health, and Orsted.

Musk declared on X: “We tried peace for two years, now it is war.”

This legal action follows a decline in advertising revenue at X after Musk acquired and renamed the social network for $44 billion in 2022.

Shortly after taking over, Musk laid off thousands of employees, including many in moderation roles tasked with removing harmful content.

Companies ceased advertising on the platform in November 2023 due to concerns about their content appearing alongside pro-Nazi posts, with X’s owner also facing accusations of spreading hate speech.

Musk later apologized for endorsing an antisemitic theory but also told advertisers to “go f*** yourself.”

The tech billionaire has faced criticism for his management of the site, particularly for failing to address misinformation during the riots in England.

The lawsuit alleges that advertisers, through the World Federation of Advertisers initiative Global Alliance for Responsible Media (GARM), engaged in collusion that violated US anti-trust laws.

The initiative was launched in 2019 to address the problem of illegal or harmful content on digital media platforms and its monetization through advertising.

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X is seeking unspecified damages and a court order to prevent further efforts to conspire to withhold advertising spending.

The company asserts that its brand-safety standards are in line with or exceed those specified by GARM, and are comparable to its competitors.

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X’s CEO, Linda Yaccarino, stated: “People suffer when the marketplace of ideas is limited. No small group should control what gets monetized.”

Legal expert Professor Christine Bartholomew from Buffalo University explained that X would need to prove there was a concerted effort to boycott involving each advertiser, which she acknowledged was a substantial challenge.

She also noted that even if successful, Musk cannot legally compel companies to advertise on X.

The companies accused by X have not yet responded to the lawsuit.

However, Unilever, which owns popular brands like Dove and Persil, stated during a congressional hearing last month that it only advertises on platforms that do not harm its brand.

Unilever’s president, Herrish Patel, affirmed in a statement: “Unilever, and Unilever alone, controls our advertising spending. No platform has the right to our advertising funds.”