Musk’s X expands lawsuit against major brands over ad boycott
X accuses major brands of illegal collusion in expanded ad boycott lawsuit
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X accuses major brands of illegal collusion in expanded ad boycott lawsuit
Elon Musk’s social media platform, X (formerly Twitter), has expanded its legal battle against major brands, accusing them of illegally boycotting the site over changes to its content moderation policies. According to a report by Patience Haggin of The Wall Street Journal, X has added Nestlé, Colgate-Palmolive, Shell, Abbott Laboratories, Lego, Pinterest, and Tyson Foods as defendants in its ongoing lawsuit.
The lawsuit, filed in federal court in Texas, alleges that these companies, along with the World Federation of Advertisers (WFA), violated antitrust laws by conspiring to collectively withhold billions of dollars in advertising from X. The WFA, which previously dismissed the lawsuit’s claims as a misrepresentation of its responsible media efforts, has yet to comment on the latest developments.
X originally filed the lawsuit in August 2024, targeting companies such as Mars, CVS Health, Orsted, and Twitch. The platform’s legal action comes after Musk took over Twitter in 2022, pledging to relax content moderation policies in the name of free speech. His approach sparked widespread advertiser concerns, leading to a significant drop in X’s ad revenue.
As Musk’s political influence has grown, some companies have reconsidered their stance on advertising with X. The Wall Street Journal reported that Amazon, which had previously pulled its ads, is now increasing its spending on the platform. However, tensions remain high between Musk and major advertisers. In November 2023, Musk made headlines when he told brands that had withdrawn from X to "go f— yourself."
The lawsuit also references the role of the Global Alliance for Responsible Media (GARM), an initiative of the WFA, which reportedly raised concerns about Twitter’s compliance with brand safety standards in 2022. X claims this action triggered a massive advertiser boycott. Shortly after X first filed its lawsuit, the WFA shut down GARM.
Previously, Unilever was named in the lawsuit, but X later dropped the company after reaching a private agreement. Meanwhile, under CEO Linda Yaccarino, X has explored alternative revenue streams such as subscriptions and digital payments, though advertising remains critical to its financial recovery.
With Musk continuing to challenge the advertising industry, this lawsuit signals his determination to push back against what he sees as coordinated efforts to undermine X’s revenue and influence.
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