Elon Musk sues Unilever and Mars over X advertising 'boycott'

Elon Musk's social media platform X, formerly known as Twitter, has filed a lawsuit against several major companies, including Unilever, Mars, CVS Health, and Orsted, along with the World Federation of Advertisers (WFA). The lawsuit claims these entities conspired to boycott X, resulting in a significant loss of advertising revenue, estimated in the billions. This situation arose after Musk's acquisition of the platform in 2022, during which advertising revenue plummeted as companies hesitated to advertise due to concerns over content moderation. X's CEO, Linda Yaccarino, emphasized the negative impact of restricting the marketplace of ideas. Musk expressed frustration over the lack of cooperation from advertisers, stating, "Now, it is war." The lawsuit alleges that the companies acted against their economic interests by adhering to safety standards from the WFA's Global Alliance for Responsible Media initiative, which aims to address harmful content in digital media. Legal experts suggest that the lawsuit may face challenges, as politically motivated boycotts are generally protected under the First Amendment. X is seeking unspecified damages and a court order to prevent further conspiracies to withhold advertising. The platform argues that it has implemented brand-safety standards comparable to its competitors and claims it has become a less effective competitor in digital advertising.

- Elon Musk's X is suing Unilever, Mars, and others for alleged advertising boycott.

- The lawsuit claims billions in lost revenue due to the boycott.

- Legal experts believe the lawsuit may struggle due to First Amendment protections.

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

- The case highlights tensions between advertisers and content moderation policies.