Elon Musk vs. advertising giants: A lawsuit against boycotts
Elon Musk expands the lawsuit against the World Federation of Advertisers, accusing them of an advertising boycott of platform X. Among the defendants are companies such as the food giant Nestlé, Danish toy manufacturer Lego, and oil company Shell.
Elon Musk, owner of platform X, formerly known as Twitter, filed a lawsuit against the World Federation of Advertisers and several large companies, accusing them of illegal advertising boycott.
The lawsuit was filed in federal court in Texas. Initially, it targeted the boycott organizer and the companies CVS and Twitch, but the list has been expanded to include Nestlé, Lego, Tyson Foods, Abbott Laboratories, Colgate-Palmolive, Pinterest, and Shell International.
Conflict with giants
The conflict began after Musk purchased platform X and implemented changes to its operations, such as restoring blocked accounts and removing content moderators.
The World Federation of Advertisers criticized these decisions, leading to a boycott of advertising by large companies. As a result, platform X experienced a decrease in revenue, with mainly small and medium-sized businesses advertising there.
Musk argues that the advertisers' actions aimed to impose brand safety standards, affecting consumer interests. The companies named in the lawsuit have not yet responded to media inquiries. This dispute shows how changes in platform policy can impact relationships with advertisers and their business decisions.
Twitter's problem
The U.S. Securities and Exchange Commission (SEC) has sued Musk, accusing him of fraud in acquiring Twitter shares. The SEC claims that Musk delayed disclosing his stakes, saving him $150 million at the expense of other shareholders. Musk denies the allegations, and his lawyer asserts that the SEC has no grounds for the lawsuit.
After acquiring Twitter, Musk implemented significant changes, including laying off 75% of the staff and loosening content moderation rules. He also renamed the platform X. These actions, along with the advertiser boycott, affected the platform’s revenue decline, prompting Musk to take legal action.
