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Elon Musk's X Sues Advertisers Coalition Over Boycott


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Elon Musk’s X has initiated legal action against a coalition of advertisers leading a boycott against the social media platform. The lawsuit, filed in Texas federal court, accuses the group of conspiring to “collectively withhold billions of dollars in advertising revenue” from the platform formerly known as Twitter.

 

The lawsuit targets the World Federation of Advertisers (WFA) and its Global Alliance for Responsible Media (GARM) initiative. GARM spearheaded the boycott following Musk’s acquisition of the platform in 2022. According to the suit, “The boycott and its effects continue to this day, despite X applying brand safety standards comparable to those of its competitors and which meet or exceed those specified by GARM.”

 

In addition to the coalition, X specifically named advertisers such as Unilever, Mars, and CVS, accusing them of violating antitrust law and undermining the competitive process through their boycott. The platform argued, “The brand safety standards set by GARM should succeed or fail in the marketplace on their own merits and not through the coercive exercise of market power by advertisers acting collectively to promote their own economic interests through commercial restraints at the expense of social media platforms and their users.”

 

Since Musk's takeover, X has faced challenges in retaining advertisers. Many were apprehensive about Musk's initial decisions to roll back content moderation policies and reinstate previously banned users, including former President Trump. Concerns escalated in November when reports surfaced that X was placing ads for mainstream brands next to pro-Nazi and white nationalist content, prompting several major advertisers to pause their spending on the platform.

 

Musk responded to the backlash with strong words for the advertisers, telling them to “go f‑‑‑ yourself.” He later clarified that his comment was not directed at advertisers "as a whole." In a recent post on X, Musk expressed his frustration, stating, “We tried being nice for 2 years and got nothing but empty words. Now, it is war.” He also encouraged other companies experiencing similar boycotts to file lawsuits.

 

Joining X in the lawsuit is Rumble, a video-sharing platform popular among conservatives. The company announced its involvement in a press release, highlighting the broader implications of the advertisers' boycott on social media platforms.

 

Credit: Hill  2024-08-08

 

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29 minutes ago, shdmn said:

They are free to advertise or not advertise wherever they want.  Best of luck clutching your pearls trying to sell this as a free speech thing or pretending it's illegal.

 

They're also free to raise or lower prices if they want. 

 

But if they do it as a group, it's illegal.

 

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9 minutes ago, impulse said:

 

They're also free to raise or lower prices if they want. 

 

But if they do it as a group, it's illegal.

 

Only if they're competitors. And there a huge and obvious difference between selling and buying.

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5 minutes ago, placeholder said:

Only if they're competitors. And there a huge and obvious difference between selling and buying.

 

We'll see.  But I wouldn't bet against X's legal team.

 

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40 minutes ago, Chomper Higgot said:

His co-investor is Saudi Prince Alwaleed bin Talal, so yeh, it’s all about free speech.

 

Volkswagen Beetles were designed by Nazis.  And that's just as relevant.

 

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4 hours ago, placeholder said:

If they were competitors of Twitter, it would be illegal. But they're not.

And, of course, at this juncture, it's kind of absurd to claim that Twitter is a free speech site when Musk has repeatedly silenced his critics and those whose political opinions he disagrees with.

like who?

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