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X Musk’s x Sue Lego, Nestlé and more brands, accusing them of advertising boycott: NPR

remon Buul by remon Buul
February 2, 2025
in Business
0
X Musk’s x Sue Lego, Nestlé and more brands, accusing them of advertising boycott: NPR
Elon Musk is represented at the American Capitol in Washington, DC, on December 5.

Elon Musk is represented at the American Capitol on December 5.

Al Drago / Bloomberg via Getty Images


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Al Drago / Bloomberg via Getty Images

Elon Musk’s X expanded an existing trial on Saturday to include several major brands – accusing more companies illegally boycotting the social media platform in 2022 after the acquisition of Musk.

The prosecution, which was filed last year before a Federal Tribunal in Texas, initially targeted the Boycott organizer, the World Federation of Advertisers, as well as companies such as CVS and the Twitch video broadcasting platform.

But early on Saturday, Musk’s lawyers filed a modified complaint, Addition of several new defendants, including Lego, Nestlé, Tyson Foods, Abbott Laboratories, Colgate-Palmolive, Pinterest and Shell International.

The Texas judge puts himself aside in the X case of Elon Musk against advertisers

The complaint alleys that the World Advertiser Federation feared that X, formerly known as Twitter, is moving away from its brand security initiative called The Global Alliance for Responsible Media (Garm). Consequently, the prosecution said that the group had prepared a large -scale break in advertising.

According to the costume, at least 18 advertisers who were part of Garm stopped buying advertisements on Twitter either in the United States or in the world in the weeks that followed Musk bought the platform in November 2022, while that other Garm members “have considerably reduced” their advertising expenses on chirping.

In turn, X said it was deprived of billions of dollars in advertising revenue and that the boycott ramifications continue to be felt years later, allegedly allegedly.

The backlash of advertisers can constitute a fatal threat to Elon Musk

X lawyers argued that in a competitive market, social media platforms should have the possibility of defining their own brand safety standards which are “optimal for this platform”.

“But collective action among competing advertisers to dictate the brand’s safety standards to be applied by social media platforms shorten the competitive process and allows the collective views of a group of advertisers with the market power of the ‘Take the interests of the consumer, “said the complaint.

The companies added to the Saturday trial did not immediately respond to the request for NPR comments.

Twitter lost 50 of his best advertisers since Elon Musk took over, said the report

Musk Recorded Twitter and his approach to what is and is not authorized on the social media platform. He restored the accounts that had been prohibited for violating the rules of the platform. He also deleted the contract content moderators, the company’s human rights team and the investigators responsible for slowing down the political manipulation and the sexual abuse material of children, as NPR previously reported.

Last year, following the prosecution, the World Federation of Advertisers interrupted Garm operations, explaining that “recent allegations which unfortunately misinterpreted their objective and its activities caused a distraction and considerably drained its resources and his finances “.

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