X Sues Global Advertising Giants Over ‘Illegal’ Boycott
X, the platform formerly known as Twitter, has initiated a lawsuit against prominent global advertising companies, claiming they colluded to carry out an “illegal” boycott aimed at restricting advertising funds to entities that support free speech initiatives. The lawsuit, filed in Texas, names the Global Alliance for Responsible Media (GARM) and affiliated brands such as CVS Health, Mars, Ørsted, Unilever, and the World Federation of Advertisers as defendants, alleging they engaged in practices that violated antitrust laws under the Sherman Act.
This legal action follows a congressional report suggesting that GARM and its members orchestrated a coordinated effort to silence voices they considered problematic, thereby harming both X and its advertisers significantly. Over the past two years, X has faced a steep decline in advertising revenue, reportedly missing out on billions in sales after GARM implemented measures to boycott the platform, particularly after Elon Musk’s acquisition of X in late 2022.
Linda Yaccarino, CEO of X, emphasized the significance of the lawsuit, stating that it is essential for a diverse marketplace of ideas to thrive without being undermined by organized boycotts that favor particular viewpoints over others. She expressed determination to address what they see as a fractured advertising ecosystem that enables such practices to persist.
Elon Musk has publicly echoed his support for the lawsuit, indicating a willingness to retaliate against entities he perceives as censorship advocates. The legal battle highlights ongoing tensions between social media platforms and large corporations over issues of free speech and the dynamics of digital advertising.
X is suing a cabal of some of the world’s largest advertising giants for organizing an allegedly illegal boycott to prevent advertisers from spending their money with companies that openly advocate for free speech.
Section 1 of the Sherman Act explicitly prohibits organizations from conspiracy against commerce or “restraint of trade.” X’s antitrust lawsuit, which was filed in a Texas court on Tuesday, aims to punish Global Alliance for Responsible Media (GARM) and several of its members, including CVS Health, Mars, Ørsted, Unilever, and the World Federation of Advertisers, for trying to suppress online free speech by unfairly targeting some of the biggest promoters of the First Amendment.
“No small group of people should be able to monopolize what gets monetized,” X CEO Linda Yaccarino said in a video detailing the case.
The lawsuit, which video streaming company Rumble also joined, comes on the heels of a House Judiciary Committee report alleging GARM likely violated federal antitrust laws by colluding with giant ad buyer GroupM to coordinate the demonization of news websites, platforms, and podcasts it deemed guilty of wrongthink.
GARM specifically targeted X with an advertising boycott shortly after Tesla CEO Elon Musk acquired the company in October 2022 which allegedly cost the company “billions of dollars” in potential ad sales. Correspondence obtained by the committee shows GARM Co-Founder Rob Rakowitz bragged about and even “took credit for Twitter’s revenue decline,” according to the committee report.
According to Yaccarino, “X has never been more committed to innovating and expanding all of our global town square.” This is especially important given GARM’s anti-free speech history and attempts to use government-backed censors like Global Disinformation Index (GDI) and NewsGuard, which repeatedly blacklist conservative outlets such as The Federalist, to determine who gets advertisers’ dollars.
“To put it simply, people are hurt when the marketplace of ideas is undermined and some viewpoints are not funded over others as part of an illegal boycott,” Yaccarino wrote in an article explaining X’s motivations for the legal action. “This behavior is a stain on a great industry, and cannot be allowed to continue.”
According to Yaccarino, X’s legal action is “about more than damages.”
“[W]e have to fix a broken ecosystem that allows this illegal activity to occur,” she continued.
X has long partnered with GARM to advance its advertising goals. The most recent development in that relationship came on July 1 when the company’s “Safety” account announced X “has reinstated our relationship with @wfamarketers Global Alliance for Responsible Media.”
“X is committed to the safety of our global town square and proud to be part of the GARM community!” the post states.
While the announcement currently stands unedited on the Safety account’s feed, Musk confirmed on Tuesday that X and GARM are no longer on working terms.
“We tried peace for 2 years, now it is war,” Musk wrote on X shortly after the lawsuit’s debut.
Yaccarino agreed that “enough is enough.”
“Rest assured, we will not stop defending our global town square,” she concluded.
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