Musk's X expands 2024 lawsuit over ad 'boycott'
By: Rachel Barber
USA Today
..... elon Musk's X is suing more companies, alleging they joined a group of advertisers illegally conspiring to boycott the social media platform.
.....
On Saturday, [02/01/2025] Musk's lawyers field an amended complaint expanding its 2024 lawsuit accusing the Global Alliance for Responsible Media, an advertising industry group, and member companies of violating antitrust laws after he brought the platform formerly known as Twitter in 2022.
..... The original lawsuit alleged they "conspired" to "collectively withhold billions in adverting revenue" and specifically named several companies including CVS, Mars, Orsted and Twitch.
.....
The new complaint adds Nestle, Abbott Laboratories, Collegiate-Palmolive, Lego, Pinterest, Tyson Foods and Shell International to the list.
.....
The lawsuit alleges that GARM members companies acted to enforce the social media platform's adherence to certain brand safety standards the group favored when they collectively stopped purchasing ads on X.
..... The complaint also alleges the member companies celebrated when X did not meet the forecast revenue goals and that the boycott continues to affect the company today, [02/02/2025] despite X applying standards "which meet or exceed those specified by GARM."
..... Nestle, Abbott Laboratories, Colgate-Pamolive, Lego, Pinterest, Tyson Foods and Shell International did not immediately respond to USA Today's request for comment.
..... Musk's lawyers argued social media companies should be able to set their own brand safety standards that are "optimal" for their platform and suer s in a competitive market, which would in turn inform advertisers' individual decisions about where to advertise.
..... "But collective action among competing advertisers to dictate brand safety standards to be applied by social media platforms shortcuts the competitive process and allows the collective views of a group of advertisers with market power to override the interests of consumers," the complaint continued.
..... Since Musk's takeover and re branding of Twitter to X, x has had a contentious relationship with advertisers. Last year, [2024] X CEO Kibda Yacarino publish an open letter to advertisers arguing ways the relationship has hurt the platform.