Written By Lisa Murimi
In a high-profile lawsuit filed in Texas, Elon Musk’s social media platform, X (formerly Twitter), is accusing major firms of unlawfully agreeing to boycott the site.
The suit targets food giants Unilever and Mars, private healthcare firm CVS Health, renewable energy company Orsted, and the World Federation of Advertisers (WFA). X alleges that these companies’ actions deprived it of “billions of dollars” in revenue.
The legal action centers on a period in 2022, shortly after Musk’s acquisition of the platform, when X’s advertising revenue plummeted. Concerns about X’s commitment to addressing harmful content reportedly led some advertisers to withdraw.
X CEO Linda Yaccarino criticized the alleged boycott, stating it threatens the company’s future viability and undermines the marketplace of ideas.
Musk took to Twitter, declaring, “We tried being nice for 2 years and got nothing but empty words. Now, it is war.”
However, legal experts suggest the lawsuit may face significant challenges. Antitrust specialist Bill Baer noted that politically motivated boycotts are often protected under the First Amendment.
Antitrust professor Christine Bartholomew highlighted the difficulty in proving an actual agreement to boycott. Even if successful, the lawsuit could not compel companies to advertise on the platform.
The WFA and the accused companies have yet to comment.
