Elon Musk’s X Sues Ad Industry Group Over Alleged Advertising ‘Boycott’

Elon Musk’s X has filed a lawsuit against the Global Alliance for Responsible Media (GARM) and four prominent companies — CVS, Unilever, Mars, and Ørsted — alleging antitrust violations and accusing the group of orchestrating an advertising “boycott” against the platform. The lawsuit claims that GARM, an ad-industry initiative run by the World Federation of Advertisers, conspired to collectively withhold billions of dollars in advertising from Twitter, now rebranded as X, due to concerns over brand safety standards post-Musk’s acquisition in late 2022.

GARM aims to help brands avoid placing advertisements alongside illegal or harmful content. It comprises over 100 member companies who agree to adhere to GARM’s brand safety standards. The lawsuit alleges that after GARM publicly urged X to comply with these standards, many affiliated companies abruptly reduced or halted their advertising on the platform. This action, according to X, has significantly harmed its core ad business, which has struggled since Musk’s takeover due to fears of ads running alongside misinformation or hate speech.

X’s CEO, Linda Yaccarino, highlighted the dire situation in a video, stating that the alleged boycott threatens the company’s long-term viability. The lawsuit seeks to prevent GARM from continuing to make recommendations about advertising on X and requests unspecified monetary damages.

This lawsuit is part of a broader pattern of legal actions by X to address its declining ad revenue. Previously, X sued the Center for Countering Digital Hate (CCDH) and Media Matters, both watchdog groups, accusing them of distorting information about hate speech and extremist content on the platform, which they claim drove advertisers away. A federal judge dismissed the suit against CCDH, and the case against Media Matters is set for trial next year.