New Delhi: It’s all out war for Elon Musk’s X, which has filed a lawsuit against multiple high-profile advertisers accusing them of antitrust violations.
The billionaire has been engaged in a feud with the advertising industry since taking over Twitter in October 2022.
“We tried peace for 2 years, now it is war,” Musk posted on X.
We tried peace for 2 years, now it is war https://t.co/elgT62uDtF
— Elon Musk (@elonmusk) August 6, 2024
As per the lawsuit, these advertisers pushed for a “boycott” that severely damaged X’s revenue stream, reported AFP.
The lawsuit alleges that a powerful advertising coalition, the Global Alliance for Responsible Media (GARM), is engaged in a collective effort to withhold billions in advertising from X Corp.
GARM’s move was a result of concerns over the social media platform’s adherence to brand safety standards after Musk’s acquired it nearly two years ago.
A voluntary initiative under World Federation of Advertisers, GARM ensures that brands don’t place their advertisements next to illegal or harmful content.
X Corp’s lawsuit names four defendants from over 100 member companies of GARM — CVS, Unilever, Mars and Danish energy giant Orsted.
The lawsuit, filed in a federal court in Texas, highlights X Corp’s struggles to restore its core advertising business, which has been in decline since Musk took over. Several advertisers have cut down on their spending drastically as they are wary of their ads being associated with misinformation or hate speech on the popular social media platform.
X Corp CEO Linda Yaccarino warned in a video message on X that the GARM-led boycott threatens the platform’s long-term viability by significantly cutting into its advertising revenue.
GARM, which is yet to respond to the lawsuit, “does not interfere with a member’s decision as to whether or not to invest advertising resources on a particular website or channel,” as is stated on its website.
