X, Owned by Elon Musk, Brings Antitrust Suit Accusing Advertisers of a Boycott

X, the social media platform owned by Elon Musk, has filed an antitrust lawsuit against the Global Alliance for Responsible Media (GARM), alleging that the coalition of major advertisers conspired to boycott the platform. The lawsuit, filed in Texas, claims that GARM coordinated with brands like CVS, Unilever, and Mars to collectively withhold billions in advertising revenue from X following Musk's acquisition in 2022. X's CEO, Linda Yaccarino, stated that this boycott undermines the marketplace of ideas and harms the company financially. Since Musk's takeover, many advertisers have reduced their spending on X due to concerns over rising hate speech and misinformation. The lawsuit argues that the refusal to advertise on X is anticompetitive, as it prevents brands from accessing low-cost advertising opportunities. X's revenue has significantly declined, with a reported 25% drop in U.S. revenue from the previous quarter. The lawsuit comes amid a broader inquiry into GARM's practices by the House Judiciary Committee. Musk's contentious relationship with advertisers has been marked by accusations of blackmail and attempts to control content on the platform. The outcome of this legal action could have significant implications for X's financial future and its relationship with advertisers.

- X has filed an antitrust lawsuit against GARM for allegedly coordinating a boycott of the platform.

- The lawsuit claims that major brands withheld billions in advertising revenue after Musk's acquisition.

- X's revenue has sharply declined, with a 25% drop in U.S. revenue from the previous quarter.

- The House Judiciary Committee is investigating GARM's influence on advertising practices.

- Musk's relationship with advertisers has been fraught with tension and accusations.