X Files Antitrust Lawsuit Against Global Alliance for Responsible Media

On Tuesday, X, the social media platform formerly known as Twitter, initiated a significant legal battle by filing a lawsuit against the Global Alliance for Responsible Media (GARM), a coalition comprised of major advertisers. The lawsuit alleges that GARM has breached antitrust laws by coordinating efforts with various brands to deter them from investing in advertising on the platform. This case was officially lodged in a federal court located in Texas.

The lawsuit claims that GARM “conspired” with prominent brands such as CVS, Unilever, and the Danish energy company Ørsted to collectively withhold billions of dollars in advertising revenue that X contends it was owed. This alleged boycott followed Elon Musk’s acquisition of the platform in 2022, which led to major shifts in the company’s operational dynamics.

Linda Yaccarino, X’s chief executive, expressed her concerns in an open letter directed to advertisers, stating, “The illegal behavior of these organizations and their executives cost X billions of dollars. People are hurt when the marketplace of ideas is undermined and some viewpoints are not funded over others as part of an illegal boycott.”

Since Musk’s takeover, X has not followed GARM’s established guidelines, although the company reaffirmed its commitment to the coalition in July. In a recent development, the House Judiciary Committee has expanded its investigation into GARM’s activities, dispatching letters to over 40 member companies. These letters request the preservation of documents and answers regarding their affiliations with the group.

Elon Musk has historically had a contentious relationship with advertisers on the platform. During The New York Times DealBook Summit last year, he accused advertisers of attempting to “blackmail” him by withdrawing their advertising spend in response to his endorsement of an antisemitic conspiracy theory. Musk notably addressed brands with the message, “don’t advertise,” punctuating his remarks with expletives to underscore his frustration.

In his remarks, Musk specifically targeted Bob Iger, the chief executive of Disney, which was among the major advertisers on X at that time. Iger had previously indicated that the company’s relationship with “Elon Musk and X was not necessarily a positive one for us.”

This is a developing news story and will be updated as more information becomes available.