Elon Musk’s X Files Lawsuit Against Ad Industry Group Over Alleged Boycott

Elon Musk’s social media platform X has filed a lawsuit against the Global Alliance for Responsible Media (GARM), accusing the influential ad industry group of orchestrating a “boycott” of advertising on the platform. The lawsuit, filed in a federal court in Texas on Tuesday, alleges that GARM and its members conspired to withhold billions of dollars in ad revenue from X due to concerns over brand safety following Musk’s acquisition of the company in late 2022.

GARM, an initiative by the World Federation of Advertisers, comprises over 100 major companies and aims to ensure that ads do not appear alongside harmful or illegal content. The lawsuit names four prominent GARM members – CVS, Unilever, Mars, and Ørsted – as defendants, claiming that their actions have significantly impacted X’s advertising revenue.

X’s legal action comes amid ongoing struggles with its ad business, which has seen a sharp decline since Musk’s takeover. The company has faced criticism and reduced ad spending from brands worried about their advertisements appearing alongside misinformation or hate speech, some of which Musk himself has been associated with. X CEO Linda Yaccarino has expressed concern that the alleged boycott by GARM threatens the platform’s future.

The lawsuit argues that GARM members agreed to adopt and enforce the group’s brand safety standards, and that many abruptly cut back on their ad purchases following GARM’s public call for X to comply with these standards. However, GARM has stated that it does not dictate individual member’s advertising decisions.

X is seeking to prevent GARM from making further recommendations regarding advertising on its platform and is pursuing unspecified monetary damages. The case reflects ongoing tensions between X and the advertising industry, following previous legal battles over content moderation and brand safety.

The lawsuit is part of a broader pattern of legal actions taken by X, including a recent suit against the Center for Countering Digital Hate (CCDH) and the progressive watchdog group Media Matters. These cases have focused on accusations of distortion and attempts to suppress criticism of the platform’s content management policies.