Now Elon Musk-owned X sues Nestl¨¦, Colgate for collective ad boycott: Report
Elon Musk's social media platform X (formerly called Twitter) has filed a lawsuit against them, alleging that they collectively conspired to boycott advertising on the platform. Read more here for details.
Elon Musk's X sues Nestl¨¦, Colgate, and other major brands for collective ad boycott, reveals report
Elon Musk, the tech giant's social media platform X (formerly called Twitter), is suing advertisers, allegedly as they collectively conspired to boycott advertising on the platform after his takeover of the company, reported Business Insider.
On Saturday, the amended complaint was filed in a Texas court, and as per the complaint, the members of the Global Alliance for Responsible Media (GARM) are now a defunct initiative from the advertiser trade body, the World Federation of Advertisers (WFA).
The report read that GARM and WFA have illegally conspired to 'collectively withhold billions of dollars in advertising revenue' from X.
Companies sued by Elon Musk's X
The WFA had earlier planned to contest the suit and was confident in its adherence to competition law, the report noted.
Well, the companies listed in it include Nestl¨¦, Shell, Abbott Laboratories, Lego, Pinterest, Colgate, Tyson Foods, WFA, CVS Health, Mars, ?rsted, and Twitch.
Why is Elon Musk suing the advertising companies?
According to the BI report, GARM, which was founded in 2019, was a US-based initiative that provides common frameworks for media owners, advertisers, and agencies to categorise harmful content like hate speech, misinformation, and online piracy. While X was also a member of this earlier.
However, later it discontinued the operations, stating that as a small non-profit organization, it lacked the resources to fight a previous lawsuit by X.
What are the current allegations?
The latest lawsuit by X alleges that the WFA organized a boycott of Twitter through GARM, intending to coerce Twitter to comply with the GARM Brand Safety Standards to the satisfaction of GARM.
The complaint further claimed that at least 18 GARM members stopped advertising on Twitter in the US or across the world between November and December 2022.
While Elon Musk had completed his $44 billion acquisition of Twitter in October 2022.
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