Elon Musk, the well-known businessman and CEO of X Corp., has recently declared „war“ on a marketing industry trade group, the Global Alliance for Responsible Media, in a federal antitrust lawsuit. Musk claims that this group was behind a discriminatory ad boycott of his social media platform, X. In a statement shared on X, Musk expressed his frustration, stating, „We tried peace for 2 years, now it is war.“
The lawsuit, filed in northern Texas, accuses the Global Alliance for Responsible Media of coordinating an „illegal boycott“ with other brands and advertising agencies against X. According to Linda Yaccarino, the CEO of X Corp., this boycott cost the social media platform „billions of dollars“ and aimed to deprive X’s users of the platform’s services. The group was created by the World Federation of Advertisers in 2019 to address the challenge of illegal or harmful content on digital media platforms.
The lawsuit also calls out approximately 100 members of the Global Alliance for Responsible Media, including well-known companies like CVS Health, Mars, Orsted, and Unilever. These companies are accused of conspiring to collectively withhold billions of dollars in advertising revenue from Twitter, Inc. This legal action comes on the heels of a report released by the House Judiciary Committee, which claimed that large media companies participated in boycotts and coordinated actions to demonetize platforms and content they deemed disfavored.
In her statement, Yaccarino suggested that there are likely other victims of the boycott and emphasized the need to fix a broken ecosystem that allows such illegal activity to occur. Musk has also called for other companies that have been systematically boycotted by advertisers to file lawsuits against the perpetrators. This move highlights Musk’s determination to fight back against what he perceives as unjust actions taken against his platform.
This is not the first time Musk has faced conflict with advertisers. In the past, major brands like Disney, Warner Bros, and Discovery paused their marketing campaigns on X after Musk was accused of posting what appeared to be an antisemitic comment. Musk criticized these companies for using his platform for marketing purposes while simultaneously boycotting it. He has also faced criticism for not doing enough to monitor and remove antisemitic content from X.
In response to criticism and allegations of hate speech on X, Musk sued a group of independent researchers, the Center for Countering Digital Hate, whose research documented an increase in hate speech on the platform. However, the lawsuit was dismissed in March. Musk’s ongoing battles with advertisers and advocacy groups highlight the challenges faced by social media platforms in balancing free speech with responsible content moderation. As the legal proceedings unfold, it remains to be seen how this conflict will impact the future of X and the broader digital advertising landscape.