Elon Musk’s social media platform X, formerly known as Twitter, is escalating its legal action, suing additional companies over their alleged involvement in an advertising boycott, USA Today reports.
The lawsuit, initially filed in 2024, now includes new allegations against major corporations such as Nestlé, Abbott Laboratories, Colgate-Palmolive, Lego, Pinterest, Tyson Foods, and Shell International.
X’s legal team filed an amended complaint on Saturday, broadening the scope of its original lawsuit, which accused the Global Alliance for Responsible Media (GARM) and its member companies of violating antitrust laws. Musk’s complaint claims that these companies conspired to withhold significant advertising revenue from X after his acquisition of the platform in 2022.
The lawsuit specifically accuses GARM and its member companies of pressuring X to adopt certain brand safety standards that align with GARM’s guidelines. When X did not meet the group’s prescribed standards, the complaint alleges that these companies collectively pulled their advertising spend, which continues to affect the platform’s revenue stream.
In addition to the previously named companies, such as CVS, Mars, Ørsted, and Twitch, the updated legal filing includes a broader list of companies allegedly involved in this coordinated boycott. X argues that the collective action of these advertisers interfered with the competitive market for social media advertising by forcing the platform to adhere to external brand safety regulations. According to X, this undermines the ability of social media companies to set their own policies, which should reflect the interests of users and the specific needs of their platforms.
X’s legal team claims that such a coordinated effort restricts market competition, allowing a group of powerful advertisers to dictate brand safety rules, potentially stifling innovation and undermining consumer interests. They assert that social media platforms should independently decide on safety standards that best serve their user base, and advertisers should make decisions based on those individual standards.
Since Musk’s acquisition of Twitter and the platform’s rebranding to X, the platform has undergone significant changes, including staff layoffs, changes to content moderation policies, and the reinstatement of accounts that were previously banned, including that of former U.S. President Donald Trump. These shifts have led to ongoing tensions with advertisers, who have expressed concerns about the direction the platform has taken.
Last year, X’s CEO, Linda Yaccarino, addressed these concerns in an open letter to advertisers, acknowledging the strain in the relationship and calling for a renewed dialogue to address the challenges. However, the recent lawsuit marks a continuation of X’s efforts to push back against the advertising community’s influence over the platform’s operational and content standards.
At present, none of the newly named companies, including Nestlé, Abbott Laboratories, and Lego, have responded to requests for comment on the lawsuit.
