Elon Musk’s X has broadened the lawsuit against advertising companies to include more organisations he alleges conspire illegally to boycott the microblogging platform.
Musk’s lawyers filed an amended complaint expanding its 2024 lawsuit accusing the Global Alliance for Responsible Media (GARM), an advertising industry group, and member companies of violating antitrust laws after he bought the platform formerly known as Twitter in 2022. The original lawsuit alleged they “conspired” to “collectively withhold billions in advertising revenue” and specifically named several companies including CVS, Mars, Ørsted and Twitch.
The new complaint added to the suit includes Nestlé, Abbott Laboratories, Colgate-Palmolive, Lego, Pinterest, Tyson Foods and Shell International.
The lawsuit alleges that GARM member companies acted to enforce the social media platform’s adherence to certain brand safety standards the group favoured when they collectively stopped purchasing ads on X.
The complaint also alleges the member companies celebrated when X did not meet its forecasted revenue goals and that the boycott continues to affect the company today, despite X applying standards “which meet or exceed those specified by GARM.”
Musk’s lawyers argued social media companies should be able to set their own brand safety standards that are “optimal” for their platform and users 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 rebrand of Twitter to X, the platform and its algorithm has drastically changed. He fired Twitter staff, cut content moderation and reinstated some previously banned accounts, including President Donald Trump’s.
All the while, X has had a contentious relationship with advertisers. Last year, X CEO Linda Yaccarino published an open letter to advertisers arguing ways the relationship has hurt the platform.