X CEO Linda Yaccarino claims the actions of these groups cost the platform ‘billions of dollars’
X has filed an antitrust lawsuit against multiple advertising organisations and claims they are involved in an “illegal boycott” of the social media platform.
The platform has filed a lawsuit against the Global Alliance for Responsible Media (GARM), the World Federation of Advertisers and multiple GARM members, such as CVS Health and Mars. X CEO Linda Yaccarino shared the decision to sue these organisations and claimed they are part of a “systematic illegal boycott” of the platform.
The CEO referenced a report from the US House of Representatives Judiciary Committee that was released last month. This report says GARM “likely violated federal antitrust laws” by boycotting certain platforms.
“Evidence obtained by the Committee shows that GARM and its members directly organised boycotts and used other indirect tactics to target disfavoured platforms, content creators and news organisations in an effort to demonetise and, in effect, limit certain choices for consumers,” the report said.
This report also claims that GARM members “colluded” to cut X’s revenue after Elon Musk acquired the platform, back when it was called Twitter.
In her post, Yaccarino said GARM’s actions have impacted various companies and called it a “great stain on a great industry”.
“This is not a decision we took lightly, but it is a direct consequence of their actions,” Yaccarino said. “The illegal behaviour of these organisations and their executives cost X billions of dollars.”
In typical fashion, Musk was more aggressive in his discussion of this lawsuit and said the company “tried being nice for two years and got nothing but empty words”, adding “now, it is war”.
Advertising woes
X has had problems with advertisers since Musk took over the platform. In November 2022, GroupM, a global media investment company, advised clients against advertising on the platform and claimed it was a “high-risk” endeavour. There have also been reports that X has failed to tackle offensive and deceptive content.
Last year, IBM and other big brands suspended advertising on X after a report claimed these ads were being shown next to pro-Nazi and pro-Hitler content. Media Matters, the non-profit that published this report, is being sued by X, which claims the non-profit “manipulated” its results by using accounts that exclusively followed major brands or users known to produce certain types of content.
The Center for Countering Digital Hate (CCDH) was sued by X Corp last year after the non-profit reported 100 tweets that it claimed “plainly” violated the social media site’s policies. After four days, the CCDH said 99 of these tweets were still on the site.
This case was eventually dismissed by a US court judge, who suggested the lawsuit had a motive to potentially deter others from criticising the platform.
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