August 7th, 2024

Elon Musk is being ridiculous. Companies are free to choose where to advertise

Elon Musk's platform X has sued advertisers for an alleged "illegal boycott," claiming antitrust violations. Critics argue advertisers prioritize brand safety, contributing to X's revenue decline amid competition.

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Elon Musk is being ridiculous. Companies are free to choose where to advertise

Elon Musk's social media platform, X, has filed a lawsuit in Texas alleging an "illegal boycott" by several advertisers, including Unilever and Mars. This comes after Musk previously encouraged advertisers to leave if they disagreed with his management of the platform, particularly following backlash over his endorsement of controversial content. The lawsuit claims that these companies conspired to withhold billions in advertising revenue, violating antitrust laws. Critics argue that Musk's claims are unfounded, as companies have the right to choose where to allocate their advertising budgets based on brand safety and effectiveness. Unilever's president highlighted that the company has shifted its advertising focus away from social media due to concerns over content quality. The article suggests that X's revenue decline is a result of low trust among advertisers and competition from other platforms that offer better returns on investment. Even if X were to win the lawsuit, advertisers would still prioritize their own interests in choosing where to spend their advertising dollars. The situation reflects broader market dynamics rather than any illegal activity by advertisers.

- X has filed a lawsuit claiming an "illegal boycott" by advertisers.

- Musk previously encouraged advertisers to leave if they disagreed with his management.

- Advertisers prioritize brand safety and effectiveness in their spending decisions.

- Unilever has reduced its social media advertising due to content concerns.

- X's revenue decline is attributed to low advertiser trust and competition from other platforms.

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By @big-green-man - 6 months
I'll say it again, this argument is a total straw man. Of course it's ridiculous that someone wants to compel someone else to contract with them and pay them. So ridiculous in fact, that if you believe this is what's going on you should rethink it.

This lawsuit is about a cartel arrangement to hurt a company in retaliation because of it's moderation policy. I don't think it's a strong case, but there is a case to be made, and I'm eager to see how it plays out in court.

By @mikerg87 - 6 months
I’m sure this won’t come up at all during any litigation…

https://www.theverge.com/2023/11/29/23981928/elon-musk-ad-bo...

By @guidedlight - 6 months
This of course, this comes on the heel of Musk’s free choice to move SpaceX’s HQ to Texas to avoid legislation on gender identity.
By @scohesc - 6 months
Seems very very silly to fight this unless you're sure you have damning, concrete evidence that companies are colluding to not advertise on Twitter. Like, many emails between advertisers saying "we're all deciding not to spend money on Twitter" - and even then, I'd think it's entirely in their collective rights to do that.

Or, you have a lot of money to spend and want to try and set some sort of precedent to hopefully end the hypocritical attitudes of these companies. Who knows - there might already be precedent and the droves of internet hacks giving their uninformed opinions (including me!) will be proven wrong?

It's humorous to see companies deciding to throw millions of dollars around to drape themselves in rainbow colors in the west, while simultaneously zipping their lips in other countries who don't share the same sentiment.

It's the attitude of "if it'll make us money, then we'll do it, but if it maybe possibly might result in fewer customers, it's not worth it".

Bring back smaller companies and shatter mega corporations into thousands of individual pieces.

By @anamax - 6 months
Santa Clara County Auto Dealers Association Settles Charges Over Alleged Advertising Boycott

https://www.ftc.gov/news-events/news/press-releases/1995/08/...

By @aeternum - 6 months
Is advertising collusion illegal in the US?