X Approaches US District Court Over Alleged Boycott By Advertisers After Twitter Buyout
Declares “war" after two years of being nice and "getting nothing but empty words"
By: : Daniel
Update: 2024-08-06 17:15 GMT
X Approaches US District Court Over Alleged Boycott By Advertisers After Twitter Buyout
Declares “war" after two years of being nice and "getting nothing but empty words"
Elon Musk's social media platform X (formerly Twitter) has filed a suit against the World Federation of Advertisers and member companies Unilever, Mars, CVS Health and Orsted. It alleged that their boycott deprived the company of billions of dollars and violated antitrust laws.
The case filed in the US District Court for the Southern District of Texas stated that the advertising group's initiative, known as the Global Alliance for Responsible Media helped in pausing advertisements. It happened in late 2022, after Musk bought Twitter for $44 billion and overhauled its staff and policies.
Linda Yaccarino, the CEO of X announced that the lawsuit was a result of the evidence uncovered by the US House Judiciary Committee, which divulged that a "group of companies organized a systematic illegal boycott" against X.
The Republican-led committee recently heard the matter to discern whether the current laws were "sufficient to deter anticompetitive collusion in online advertising."