Group Sued by Elon Musk's X for "Illegal" Ad Boycott That Costs Billions
According to the lawsuit, advertisers' boycott of X, the old Twitter, was orchestrated in 2022 by the Global Alliance for Responsible Media, ostensibly because to concerns about X's adherence to specific "brand safety" guidelines.
A complaint was launched by Elon Musk's X Corp. alleging that an industry organization violated antitrust laws by causing billions of dollars' worth of damage to the social media platform through an advertising boycott.
The lawsuit, which was submitted on Tuesday to a federal court in Texas, asserts that the Global Alliance for Responsible Media orchestrated the 2022 boycott by advertisers under the pretense of wondering if X—the company that was formerly known as Twitter—would follow certain "brand safety" guidelines for content on the network following Musk's $44 billion acquisition of the company.
X Chief Executive Officer Linda Yaccarino stated in a statement on the site, "To put it simply, people are hurt when the marketplace of ideas is undermined and certain viewpoints are not funded over others as part of an illegal boycott." "This conduct is a stain on a great industry, and cannot be allowed to continue."
Several major advertisers, including Apple Inc. and Walt Disney Co., removed their advertisements from the platform in response to outcry about uncensored antisemitic content and commentary on X, some of which was supported by Musk. Furthermore, Musk has resisted government initiatives to filter offensive content on social media.
X's complaint coincides with increased scrutiny of GARM by House Republicans and conservative media sources. GARM has over 100 members, including advertisers such as Procter & Gamble Co. and Unilever Plc.
The lawsuit cites a July report from the House Judiciary Committee accusing GARM of denying conservative media outlets of ad revenue from its members. Republican lawmakers have accused the group of breaking antitrust laws.
GARM did not respond to a request for comment right away.
The industry association stated in its 2022 annual report that it had assisted in the development of uniform definitions, analytics, and tools to enable advertisers and their partners make sure their advertisements don't run alongside content that they may find objectionable.
X asserted in its lawsuit that the group's activities amount to a "naked restraint of trade."
"Collective action among competing advertisers to dictate brand safety standards to be applied by social media platforms shortcuts the competitive process and allows the collective views of a group of advertisers with market power to override the interest of consumers," X stated in its lawsuit.
The richest person in the world, Elon Musk, has taken legal action in response to claims of slack moderation on his social networking site and has self-described as a supporter of free expression of toxic posts, though with mixed success.
The video-sharing website Rumble announced that it would bring a case of its own in a federal court in Texas, alleging the same things as X, against GARM and the World Federation of Advertisers.
X v. World Federation of Advertisers, US District Court, Northern District of Texas (Wichita Falls), case number 7:24-cv-00114.
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