In a bold move, Elon Musk and his company X, formerly Twitter, have filed a lawsuit against several major advertisers, accusing them of participating in an illegal boycott that has purportedly cost the company billions. X CEO Linda Yaccarino announced the lawsuit following a revealing report by the House Judiciary Committee, which detailed the actions of the World Federation of Advertisers (WFA) and its subsidiary, the Global Alliance for Responsible Media (GARM).
The report, titled “GARM’s Harm,” alleges that the WFA, which controls 90% of global marketing spending, orchestrated a boycott against X. This group represents some of the world’s largest companies, including Disney and Coca-Cola. According to the report, the WFA’s actions have caused significant financial damage to X, leading to the decision to pursue legal action.
Yaccarino expressed her shock at the findings, stating, “I thought I had seen everything.” She highlighted evidence from the investigation that showed a concerted effort to undermine X and other companies. “The illegal behavior of these organizations and their executives cost X billions of dollars,” she said.
Musk shared Yaccarino’s announcement on X, adding, “We tried peace for 2 years, now it is war.” This statement underscores the gravity of the situation and Musk’s frustration with the prolonged financial impact of the alleged boycott.
The lawsuit names CVS Health, Mars, Orsted, and Unilever as defendants, along with GARM and the WFA. The House Judiciary Committee’s report also included internal emails suggesting that GARM members actively organized boycotts to demonetize and limit the reach of certain platforms and content creators.
The internal communications reportedly showed GARM head Robert Rakowitz bragging about X being “80% below revenue forecasts” since the boycott began. Rakowitz later claimed this was a “self-effacing joke.”
As the lawsuit progresses, it highlights the significant tension between major tech platforms and the advertising industry. The outcome could have far-reaching implications for the regulation of corporate influence and the future of digital advertising.
