- Elon Musk sue Unilever and mars.
Elon Musk’s X/Twitter is taking legal action against a group of big companies, claiming they illegally worked together to refuse service to the platform.
It claims that Unilever, Mars, CVS Health, Orsted, and the World Federation of Advertisers (WFA) have cost it “billions of dollars” in advertising revenue.
The lawsuit pertains to the time in 2022 right after Mr. Musk acquired X, previously called Twitter, when ad revenues significantly decreased.
Certain companies were hesitant to advertise on the platform due to worries that its new owner was not committed enough to eliminating harmful online content.
X CEO Linda Yaccarino stated that individuals are harmed when the marketplace of ideas is limited. No few individuals should control what is monetized.
Mr Musk posted on Twitter: “We attempted to be kind for a span of 2 years and received only hollow expressions.” “It is now a war.”
The WFA and the companies under scrutiny did not respond promptly to comment requests.
Elon Musk sues Unilever and Mars over X ‘boycott’
Advertising income at X decreased by over 50% after Mr. Musk purchased the company as advertisers steered clear of the platform.
X claims in its legal case that the involved companies unfairly limited their spending by adhering to safety guidelines established by the Global Alliance for Responsible Media (Garm), a WFA initiative.
Garm’s goal is to assist the industry in tackling the issue of unlawful or damaging content on digital media platforms and its profitability through advertising.
X alleges that the companies conspired against the platform, violating US antitrust laws, despite acting counter to their own economic interests.
Bill Baer, the former assistant attorney general for the antitrust division at the Department of Justice during the Obama administration, expressed doubt about the lawsuit’s chances of success.
In general, a boycott driven by political reasons is typically not considered a violation of antitrust laws. He stated that it is speech protected by the First Amendment.
Professor Rebecca Haw Allensworth from Vanderbilt University stated that the boycott aimed to express criticism towards X’s policies and their brands.
She stated that is defended by the First Amendment.
Despite a successful outcome of the lawsuit, the social media platform lacks the power to compel businesses to purchase ad space on their site.
X is looking for damages that are not specified and a court order to prevent ongoing conspiracies to withhold advertising funding.
In the lawsuit, it claimed to have implemented brand-safety measures similar to its rivals and surpassing Garm’s specified standards.
It was also stated that X has become a “weaker contender” in the digital advertising market.
On Tuesday, Rumble, a popular platform among conservative influencers, also asserted similar allegations in a different legal case against the World Federation of Advertisers.
In other news, see also: Captain America: Brave New World Star Giancarlo Esposito Confirmed To Play Supervillain Sidewinder.
Elon Musk sue Unilever and mars.