X is suing major advertisers, accusing them of working together to stop buying ads on the platform.
The lawsuit, filed in Texas, claims that a group called GARM advised advertisers to boycott X after Elon Musk took over.
This boycott is said to have cost X billions in lost revenue. The lawsuit is asking for damages under U.S. antitrust laws.
Rumble, a right-wing video site, has also sued GARM, saying the group is unfairly targeting it and other platforms.
The U.S. House Judiciary Committee is looking into GARM’s actions, and a preliminary report suggests GARM might be breaking antitrust laws.
X’s CEO Linda Yaccarino was surprised by the evidence of a “systematic illegal boycott” and criticized the advertisers for attacking both X and its users.
The lawsuit names several big companies, including Unilever and Mars, and Rumble’s lawsuit also targets the ad agency WPP.
X’s lawsuit argues that GARM has too much influence over content standards for social media platforms.
The tension between X and advertisers has been high since Musk’s takeover, with some brands pulling their ads due to controversial content on the platform.
Advertisers might argue that they have the right to choose where their ads appear and should not be forced to support viewpoints they disagree with.
