Musk Launches Lawsuit: “Now It’s War”

Musk Launches Lawsuit Aimed at Companies He Brutally Insulted

Our favorite tech mogul and self-proclaimed free speech warrior, Elon Musk, is back in the headlines. This time, he’s not tweeting about dogecoin or picking fights with journalists. No, folks, he’s taking his grievances to court. Buckle up, because this legal rollercoaster is about to get wild.

The Lawsuit

Elon Musk’s social media platform X (formerly Twitter) has filed a lawsuit against major advertisers and the World Federation of Advertisers in Texas. The lawsuit claims these companies coordinated an advertising boycott that cost X billions in revenue and violated antitrust laws. Specific companies named as defendants include Unilever, Mars, CVS Health, and Orsted.

The Global Alliance for Responsible Media (GARM), a brand safety initiative, is accused of orchestrating the advertising pause after Musk’s acquisition of Twitter. X CEO Linda Yaccarino cited evidence from the U.S. House Judiciary Committee, claiming a “systematic illegal boycott” had taken place.

This legal action comes just months after Musk’s infamous “go f yourself” comment directed at advertisers leaving the platform. The shift from that confrontational stance to a legal battle marks a significant escalation in Musk’s approach to dealing with advertisers.

The Boycott

The advertising exodus from X began in November 2023, with many companies citing concerns about their ads appearing alongside pro-Nazi content and hate speech. This mass departure dealt a severe blow to X’s revenue stream, prompting Musk to declare “war” on advertisers.

The lawsuit alleges that GARM and the named companies engaged in an illegal conspiracy to boycott X and other platforms. This claim is bolstered by an ongoing investigation by the Republican-led House Judiciary Committee into GARM’s potential antitrust activities.

Legal Challenges

While Musk and X are coming out swinging, legal experts suggest that proving unlawful boycott agreements in court could be an uphill battle. The platform must provide concrete evidence of an actual agreement joined by each advertiser named in the suit.

“Proving this requirement is no small hurdle” – Christine Bartholomew, antitrust expert and professor at University at Buffalo’s law school

Moreover, advertisers argue that they have the right to choose where their ads appear. Unilever’s Chief Brand Officer, Herrish Patel, stated in written remarks for a congressional hearing that “Unilever, and Unilever alone, controls our advertising spending. No platform has a right to our advertising dollar.”

As this legal battle unfolds, it’s clear that the relationship between social media platforms and advertisers is entering uncharted territory. The outcome of this lawsuit could have far-reaching implications for the future of online advertising and content moderation.

Sources:

  1. Elon Musk’s X sues advertisers over alleged ‘massive advertiser boycott’ after Twitter takeover
  2. Musk declares ‘war’ on advertisers as X sues ad alliance, companies
  3. Musk’s X accuses advertisers of boycotting platform in new lawsuit
  4. Elon Musk’s X Sues Advertisers Over Alleged Boycott
  5. X, Owned by Elon Musk, Brings Antitrust Suit Accusing Advertisers of a Boycott
  6. Now Elon Musk declares ‘war’ on advertisers: X sues brands and trade group over ‘illegal boycott’- amid billionaire owner’s clash with Keir Starmer

More from Around the Web:

HUGE: Elon Musk SUES Advertisers Over X Boycott, CALLS OUT Monopolists:

Rumble Joins X in the Lawsuit:

Now It’s War:

RELATED ARTICLESMORE FROM AUTHOR