X, the platform formerly known as Twitter, has escalated its conflict with advertisers, filing a lawsuit today against the Global Alliance for Responsible Media (GARM), the World Federation of Advertisers (WFA), and several major corporations. The social media giant alleges these entities orchestrated an illegal boycott that cost X billions of dollars in revenue.
The lawsuit stems from a recent U.S. House of Representatives Judiciary Committee report that uncovered evidence of a coordinated boycott against X and other companies. The report alleges that GARM and its members organized boycotts and employed tactics to demonetize and limit consumer choices. X claims this behavior directly harmed the platform’s users and undermined the marketplace of ideas.
Illegal Boycott Accusations Emerge as X Files Lawsuit Against Advertisers
In a scathing open letter posted on the platform, X CEO Linda Yaccarino outlined the allegations. She accused GARM and its members of “organizing a systematic illegal boycott” against X. She emphasized the platform’s role as a “global town square” and the detrimental impact of the boycott on its users and the free flow of information.
“The consequence – perhaps the intent – of this boycott was to seek to deprive X’s users, be they sports fans, gamers, journalists, activists, parents or political and corporate leaders, of the Global Town Square,” Yaccarino wrote.
The lawsuit targets GARM members CVS Health, Mars, Orsted, and Unilever, claiming their collective actions constitute an antitrust violation. X contends that despite implementing measures to address advertiser concerns and enhance platform safety, the boycott persisted.
“We have met and surpassed the requests made by advertisers and groups such as GARM for new tools,” Yaccarino stated. “We have proven our platform provides advertisers a way to showcase their brands and reach their target audiences safely, efficiently, and effectively.”
The CEO also highlighted X’s growth and user engagement, asserting that the platform has thrived despite the boycott. “Since arriving at X, I made it my mission to continue to build a platform where people, brands, and advertisers can thrive in our unique, dynamic, and safe environment,” Yaccarino said. “And because of this commitment to our users, even despite the boycott, usage has reached all-time highs.”
2024-08-07 15:08:44