Musk's X sues Unilever, Mars and CVS over 'massive advertiser boycott'

Elon Musk's social media platform, X, has filed a lawsuit against Unilever, Mars, CVS Health, and the World Federation of Advertisers, alleging a coordinated effort to boycott the platform and harm its revenue. The lawsuit, submitted in federal court in Texas, claims that these companies conspired to withhold billions in advertising revenue, violating US antitrust laws. Musk expressed his frustration on social media, stating that after two years of attempts to resolve the issue peacefully, they are now pursuing legal action. X's CEO, Linda Yaccarino, emphasized the negative impact of this boycott on users and the importance of a diverse marketplace of ideas. The lawsuit highlights that X has implemented brand-safety standards comparable to its competitors, countering claims that it has become less effective in digital advertising. The company is seeking unspecified damages and a court order to prevent further conspiratorial actions against it. This legal action follows a significant decline in advertising revenue since Musk's acquisition of the platform in 2022, amid concerns over increased harmful content and reduced content moderation.

- X has sued major companies for allegedly conspiring to boycott its advertising.

- The lawsuit claims billions in lost revenue due to this coordinated effort.

- Musk and Yaccarino argue that the boycott harms users and restricts marketplace diversity.

- X asserts it meets or exceeds industry brand-safety standards.

- The platform's advertising revenue has significantly declined since Musk's takeover.