Elon Musk's X Bolsters Antitrust Lawsuit With Additional Advertisers
Generated by AI AgentWesley Park
Saturday, Feb 1, 2025 2:46 pm ET1min read
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Elon Musk's social media platform, X (formerly Twitter), has bolstered its antitrust lawsuit against a group of prominent advertisers by adding more big names to the list of defendants. The lawsuit, initially filed in August, accused these advertisers of conspiring to boycott advertising on the platform after Musk's takeover. Now, X has expanded its lawsuit to include Nestlé, Abbott Laboratories, Colgate, Lego, Pinterest, Tyson Foods, and Shell, among others.
The lawsuit alleges that members of the now-dissolved Global Alliance for Responsible Media (GARM) unlawfully conspired to withhold billions in advertising revenue from X. The World Federation of Advertisers (WFA), CVS Health, Mars, Ørsted, and Twitch are also named as defendants in the case. The WFA has previously declared its intention to fight the suit, asserting its compliance with competition law.
As per Business Insider, the lawsuit claims that at least 18 GARM members stopped advertising on Twitter between November and December 2022, following Musk's acquisition of the platform. This boycott allegedly led to X becoming a less competitive entity in the digital advertising space and a decrease in user engagement on its platform. X is demanding trebled compensatory damages and injunctive relief for what it alleges are breaches of US antitrust laws.
The expansion of this lawsuit underscores the ongoing tension between X and major advertisers following Musk's takeover. The outcome of this case could have significant implications for the digital advertising industry and competition law. If X's allegations are proven, it could potentially reshape the dynamics of the digital advertising space and set a precedent for future cases involving alleged anti-competitive behavior.
Read Next © 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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Elon Musk's social media platform, X (formerly Twitter), has bolstered its antitrust lawsuit against a group of prominent advertisers by adding more big names to the list of defendants. The lawsuit, initially filed in August, accused these advertisers of conspiring to boycott advertising on the platform after Musk's takeover. Now, X has expanded its lawsuit to include Nestlé, Abbott Laboratories, Colgate, Lego, Pinterest, Tyson Foods, and Shell, among others.
The lawsuit alleges that members of the now-dissolved Global Alliance for Responsible Media (GARM) unlawfully conspired to withhold billions in advertising revenue from X. The World Federation of Advertisers (WFA), CVS Health, Mars, Ørsted, and Twitch are also named as defendants in the case. The WFA has previously declared its intention to fight the suit, asserting its compliance with competition law.
As per Business Insider, the lawsuit claims that at least 18 GARM members stopped advertising on Twitter between November and December 2022, following Musk's acquisition of the platform. This boycott allegedly led to X becoming a less competitive entity in the digital advertising space and a decrease in user engagement on its platform. X is demanding trebled compensatory damages and injunctive relief for what it alleges are breaches of US antitrust laws.
The expansion of this lawsuit underscores the ongoing tension between X and major advertisers following Musk's takeover. The outcome of this case could have significant implications for the digital advertising industry and competition law. If X's allegations are proven, it could potentially reshape the dynamics of the digital advertising space and set a precedent for future cases involving alleged anti-competitive behavior.
Read Next © 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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