Elon Musk’s social media platform, X, has filed a lawsuit in federal court in Texas against several major companies and a global advertising alliance. The lawsuit accuses the World Federation of Advertisers, Unilever, Mars, CVS Health, and Danish renewable energy company Orsted of conspiring to boycott X, resulting in significant revenue losses for the platform.
X alleges that through an initiative called the Global Alliance for Responsible Media, these advertisers collectively withheld billions of dollars in advertising revenue. The platform claims this coordinated action was against their own economic interests and constitutes a violation of U.S. antitrust laws.
The suit claims that X’s ad revenue plummeted following Elon Musk’s acquisition of the company in 2022, partly due to concerns that ads might appear next to harmful content—a concern exacerbated under Musk’s ownership. X argues that the advertising group’s actions were part of a broader conspiracy to damage the platform’s financial viability.
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X’s CEO, Linda Yaccarino, criticized the situation, stating that restricting the marketplace of ideas is harmful and that no small group should control what gets monetized.
The World Federation of Advertisers, along with Unilever, Mars, CVS Health, and Orsted, has not yet responded to requests for comment. The lawsuit was filed in the Northern District of Texas, which has become a preferred venue for conservative cases against federal policies.
Christine Bartholomew, an antitrust expert from the University at Buffalo, noted that proving a conspiracy to boycott can be challenging. X must demonstrate an explicit agreement among the advertisers, a significant hurdle in cases where such agreements may be implicit. Even if successful, X cannot compel companies to spend ad revenue on its platform.
X is seeking unspecified damages and a court order to prevent any ongoing attempts to withhold ad revenue. Additionally, video-sharing company Rumble has also filed a separate antitrust lawsuit against the World Federation of Advertisers.
