Elon Sues Advertisers for Boycotting X
c0lo writes:
The Verge has a better perspective:
Elon sues advertisers for boycotting XX files antitrust lawsuit against advertisers over 'illegal boycott'
X is suing a group of major advertisers over accusations that they held an "illegal boycott" against the platform formerly known as Twitter. In a lawsuit filed on Tuesday, X claims Unilever, Mars, CVS, Orsted, and dozens of other brands conspired to "collectively withhold billions of dollars in advertising revenue" through a World Federation of Advertisers (WFA) industry initiative.
To join the WFA's initiative, called the Global Alliance for Responsible Media (GARM), companies must agree to withhold advertising from social platforms that aren't compliant with the organization's safety standards. X alleges GARM "organized an advertiser boycott of Twitter" to coerce the company into following the initiative's safety standards. The lawsuit is being filed despite X announcing that it was "excited" to rejoin GARM last month.
"The evidence and facts are on our side," X CEO Linda Yaccarino said in a video posted to X. "They conspired to boycott X, which threatens our ability to thrive in the future. That puts your global Town Square - the one place that you can express yourself freely and openly - at long-term risk."
[...] It's not clear how well X's lawsuit will fare in court because, as pointed out by Techdirt, the ability to choose where to advertise is protected under the First Amendment. The ad tech watchdog group Check My Ads similarly states that advertisers have the right "to not send money to a platform that promotes hate and conspiracies."
Elon Musk sues Unilever and Mars over X 'boycott'
X claims they have deprived it of "billions of dollars" in revenue.
Legal experts say the case is unlikely to succeed as any collusion or agreement between companies will be hard to prove.
Elon Musk can't force advertisers to spend
[...] Musk's lawsuit is based on a recent investigation of Garm led by the judiciary committee of the Republican-controlled US House of Representatives. It was filed in an obscure federal court branch in Texas known for a particular conservative judge. X's lawyer is a well-known rightwing legal figure, not a big national law firm.
[...] X's business issues are real enough. According to the New York Times, X ad revenue in the US has collapsed to $114mn in a recent quarter. Total group global revenue for Twitter in 2021 was $5bn. The company has a $13bn debt pile where annual interest expense is well above $1bn.
[...] Advertisers decided that, since there were only a handful of dominant social networks, they needed to band together in order to enforce standards. Garm and the companies will have to show that while they perhaps co-ordinated on some matters, there was nothing binding about their alliance when it came to economic decisions. It would be decidedly odd for any company to surrender their autonomy to a trade association. Musk's burden is higher, explaining exactly why profit-seeking companies would irrationally avoid his product.
Other links:
Al-Jazeera: Musk declares 'war' on advertisers as X sues ad alliance, companies
The Guardian: Musk's X sues Unilever, Mars and CVS over 'massive advertiser boycott'
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