Elon Musk’s X has escalated its legal battle by adding more major advertisers to its lawsuit over an alleged coordinated ad boycott. In an amended complaint filed on Saturday in a Texas court, X named Nestlé, Abbott Laboratories, Colgate, Lego, Pinterest, Tyson Foods, and Shell as new defendants.
The lawsuit, originally filed in August, claims that these advertisers conspired to withhold billions in ad revenue from X following Musk’s $44 billion takeover of Twitter in October 2022. The WFA, CVS Health, Mars, Ørsted, and Twitch remain as existing defendants in the case.
Lawsuit Targets Former Ad Industry Initiative
The complaint accuses the World Federation of Advertisers (WFA) of organizing a boycott through its former initiative, the Global Alliance for Responsible Media (GARM). Established in 2019, GARM aimed to categorize harmful online content and create a “brand safety floor” for advertisers.
GARM’s frameworks were voluntary, yet many media owners, advertisers, and agencies adopted them to prevent ads from appearing alongside unsuitable content. X itself was once a GARM member but later claimed the organization pressured advertisers into compliance.
The lawsuit alleges that at least 18 GARM members halted their advertising on X between November and December 2022, significantly impacting the platform’s digital ad sales. GARM shut down after X filed its initial lawsuit, citing a lack of resources to fight legal challenges.
X Seeks Damages for Alleged Antitrust Violations
X argues that the advertiser boycott made the platform a less competitive player in the digital ad market. Musk’s company insists that GARM members collectively acted to enforce compliance with brand safety standards by cutting ad spending on X.
The lawsuit seeks treble compensatory damages and injunctive relief for what it calls violations of U.S. antitrust laws. The WFA, alcohol giant Diageo, and ad agency WPP face similar legal action from Rumble, which claims advertisers restricted ads on conservative-leaning platforms.
Meanwhile, House Judiciary Committee Chairman Jim Jordan is investigating whether advertiser and agency ties to GARM led to the demonetization of conservative media. The legal battle could reshape advertising industry standards and social media ad policies in the coming months.
