Musk's X escalates legal battle, adds Nestlé, Colgate, Shell, and others to ad-boycott suit

Initially filed last year, the lawsuit targeted the World Federation of Advertisers, alleging an illegal conspiracy to withhold advertising revenue from X following Musk's acquisition of the platform in November 2022 

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New Delhi: Elon Musk's social media platform X (formerly known as Twitter) has broadened its legal fight against what it claims is an orchestrated advertising boycott by major corporations. 

On Saturday, X's lawyers filed an amended complaint in federal court in Texas, naming Nestlé, Colgate-Palmolive, Shell, Lego, Pinterest, Tyson Foods, and Abbott Laboratories as new defendants in the ongoing antitrust lawsuit.

Initially filed last year, the lawsuit targeted the World Federation of Advertisers (WFA) and several companies including CVS Health and Twitch, alleging an illegal conspiracy to withhold advertising revenue from X following Musk's acquisition of the platform in November 2022. 

The amended complaint accuses these newly added brands of participating in a concerted effort to boycott X, which the company claims led to a significant loss of "billions of dollars in advertising revenue."

According to the legal document, the boycott was allegedly coordinated through the Global Alliance for Responsible Media (GARM), an initiative by the WFA. X alleges that GARM's concerns over the platform's compliance with brand safety standards prompted a "massive advertiser boycott" shortly after Musk's purchase. They argue that this deprived X of ad revenue and dented its competitive edge in the digital advertising market.

The lawsuit claims that at least 18 advertisers part of GARM either stopped or substantially reduced their ad spending on X post-acquisition, with the ripple effects still felt years later. X's legal team argues that in a competitive market, platforms should have the autonomy to set their brand safety standards without being dictated by advertiser coalitions, which they claim bypasses the competitive process.

Musk, known for his no-holds-barred approach on social media, had previously told advertisers pulling out of X to "go f— yourself," signalling a contentious relationship with the advertising industry. Despite this, some companies have returned to advertising on X, perhaps influenced by Musk's growing political clout and his alignment with certain political figures.

Elon musk advertiser brand safety World Federation of advertisers
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