Elon Musk’s X Corp. has taken legal action against the World Federation of Advertisers and several large corporations, alleging a conspiracy to withhold advertising revenue from the platform formerly known as Twitter. In a lawsuit filed in the US District Court for the Northern District of Texas, X Corp claims that the defendants, including Unilever and Mars, Inc., coordinated a boycott that cost the social network billions.
“We tried peace for 2 years, now it is war,” Musk wrote today, reflecting a growing tension between the social media giant and advertisers. This statement comes after Musk previously told boycotting advertisers to “go fuck yourself.”
The legal complaint targets the World Federation of Advertisers’ Global Alliance for Responsible Media (GARM) initiative, seeking treble damages and a permanent injunction to halt the alleged anticompetitive behavior. X Corp argues that the boycott is an antitrust violation aimed at enforcing certain brand safety standards on the platform.
Linda Yaccarino, CEO of X, echoed these sentiments in an open letter to advertisers, calling the boycott an ‘illegal’ stain on the industry. She claimed that the actions of these organizations have led to significant financial damage for X.
Meanwhile, the Check My Ads Institute has countered that Musk’s claims should fail under the First Amendment, asserting that advertisers are free to choose how they allocate their resources. “Advertisers have a First Amendment right to choose who and what they want to be associated with,” the watchdog group said.
Earlier, Musk suggested that advertisers might face “criminal liability via the RICO Act” for their actions. While X Corp. was taken private by Musk, a report from The New York Times noted a 53% decline in year-over-year revenue in the second quarter, underscoring the financial stakes involved.