X sues Unilever and Mars over advertising boycott

Elon Musk's X (formerly Twitter) has initiated a lawsuit against several advertisers and major corporations, alleging they unlawfully conspired to "boycott" the platform. 

The lawsuit, filed in a Texas court, targets food industry giants Unilever and Mars, private healthcare company CVS Health, renewable energy firm Orsted, and the World Federation of Advertisers (WFA) trade association.

According to X, this alleged boycott has cost the platform "billions of dollars" in revenue. However, legal experts are skeptical about the lawsuit's chances of success, as proving collusion between the companies will be challenging.

The lawsuit stems from the period following Musk's acquisition of Twitter in 2022, during which advertising revenue sharply declined. Concerns arose among some companies about the platform's commitment to removing harmful online content under its new ownership.

In the year following Musk's takeover, advertising revenue dropped by more than half. X's CEO, Linda Yaccarino, stated that restricting the marketplace of ideas hurts people and that no small group should control what gets monetized. She expressed that the alleged boycott jeopardizes the company's future success.

The lawsuit claims the accused companies unfairly withheld advertising by adhering to safety standards established by the WFA's Global Alliance for Responsible Media (GARM), which aims to address harmful content on digital platforms and its monetization via advertising. X argues that this compliance led to a conspiracy against the platform, violating US antitrust laws.