Elon Musk’s X has filed an expanded lawsuit against major advertisers, claiming they conspired to boycott advertising on the platform. The legal complaint, submitted to a Texas court on Saturday, accuses several new defendants of withholding advertising funds after Musk’s takeover.
The lawsuit initially filed in August now includes Nestlé, Abbott Laboratories, Colgate, Lego, Pinterest, Tyson Foods, and Shell. X alleges that these companies, along with existing defendants like WFA, CVS Health, Mars, Ørsted, and Twitch, deliberately withheld billions in ad revenue.
The Global Alliance for Responsible Media (GARM), a now-defunct industry group, played a central role in this alleged boycott. The World Federation of Advertisers (WFA) established GARM in 2019 to help advertisers identify harmful content, such as hate speech and misinformation.
X Accuses Advertisers of Coordinated Boycott
X claims that GARM members worked together to pressure Twitter into complying with brand safety guidelines. The lawsuit asserts that at least 18 GARM members stopped advertising on Twitter between November and December 2022.
Musk’s $44 billion acquisition of Twitter had closed just a month earlier. Following mass layoffs in Twitter’s sales and safety teams, many advertisers distanced themselves from the platform. The return of previously banned accounts further fueled advertiser concerns.
According to X, the boycott weakened Twitter’s ability to compete in digital advertising and attract user engagement. The company alleges that GARM members collectively enforced compliance with brand safety rules by cutting off ad revenue.
GARM shut down after X’s initial lawsuit, citing a lack of resources to fight the case. However, the WFA and other defendants insist they acted within competition laws and plan to contest the lawsuit.
Antitrust Allegations and Political Investigations
X is seeking damages for what it calls violations of US antitrust laws. The company is demanding trebled compensatory damages and injunctive relief against the alleged boycott organizers.
This lawsuit is part of a broader legal battle involving WFA, alcohol giant Diageo, and ad agency WPP. The video platform Rumble has also sued these advertisers, accusing them of restricting ad spending on select social media platforms.
Additionally, House Judiciary Chairman Jim Jordan is investigating whether advertisers and agencies used GARM to demonetize conservative media. The outcome of these lawsuits could reshape the advertising landscape and redefine platform accountability.
