Elon Musk and his company X, formerly known as Twitter, have taken legal action. against several major advertisers, alleging an illegal boycott that has cost the company billions of dollars. The lawsuit was announced by X CEO Linda Yaccarino following a House Judiciary Committee report that exposed 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,” outlines how the WFA, which controls 90% of global marketing spending, coordinated a boycott against X. The WFA represents some of the world’s largest companies, including Disney and Coca-Cola. According to the report, this boycott has caused significant financial damage to X.
In a post on X, Yaccarino expressed her disbelief at the findings, stating, “I thought I had seen everything.” She highlighted the illegal behavior of these organizations and their executives, which has severely impacted X’s revenue. “The illegal behavior of these organizations and their executives cost X billions of dollars,” she reiterated.
Elon Musk shared Yaccarino’s post, adding a stark message: “We tried peace for 2 years, now it is war.” This declaration underscores Musk’s frustration with the ongoing financial impact of the alleged boycott and his determination to address it through legal means.
The lawsuit names several major companies, including CVS Health, Mars, Orsted, Unilever, GARM, and the WFA. The House report detailed how GARM and its members organized boycotts and used indirect tactics to limit the reach and monetization of certain platforms and content creators.
BlazeTV’s James Poulos commented on the situation, suggesting that the conflict between Musk and X’s advertisers has been building for years. “Rather than mild-mannered normies afraid of controversial content on X, advertisers operate as a cartel of far-left propagandists, reaping profits from taxpayers on government contracts while conspiring to silence free speech at odds with their radical ideologies,” Poulos said.
The report also revealed internal emails from GARM head Robert Rakowitz, who allegedly bragged about X’s significant revenue shortfall since the boycott began. Rakowitz later dismissed the email as a “self-effacing joke.”
As the lawsuit unfolds, it highlights the tension between tech platforms and the advertising industry. The outcome could have significant implications for the regulation of corporate influence and the future of digital advertising.
