Elon Musk's X files lawsuit against Ad industry group for alleged advertising 'Boycott'

Elon Musk’s X files lawsuit against Ad industry group for alleged advertising ‘Boycott’

AGS NEWS – Elon Musk’s social media platform, X, has filed a lawsuit against a major advertising group, accusing it of antitrust violations.

The lawsuit claims that the Global Alliance for Responsible Media (GARM) organized a “boycott” of advertising on X, withholding billions in ad spending due to concerns that the platform no longer met brand safety standards after Musk’s 2022 acquisition.

GARM, an ad-industry initiative led by the World Federation of Advertisers, aims to prevent ads from appearing next to illegal or harmful content.

The lawsuit also names four companies—CVS, Unilever, Mars, and Ørsted—as defendants.

X alleges that after GARM urged the platform to comply with brand safety standards, many of its members significantly reduced or stopped advertising on X.

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The lawsuit is part of X’s broader effort to revive its struggling ad business, which has seen a sharp decline since Musk took over, partly due to concerns about misinformation and hate speech on the platform.

X CEO Linda Yaccarino warned that the alleged boycott threatens the company’s long-term viability.

The lawsuit seeks to stop GARM from making further recommendations about advertising on X and is asking for unspecified damages.

This is not the first legal action X has taken in response to its declining ad revenue; the platform previously sued the Center for Countering Digital Hate and the watchdog group Media Matters, accusing them of contributing to the platform’s advertising troubles.