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X is currently taking legal action against more advertisers in an antitrust lawsuit, all because of what the company’s CEO Linda Yaccarino has labeled as a “systematic illegal boycott.”
The initial lawsuit was filed against the World Federation of Advertisers and its brand safety initiative, the Global Alliance of Responsible Media, by the company formerly known as Twitter in August 2024. Following this, the WFA decided to discontinue GARM due to allegations that were seen as a distraction and had drained its resources.
Subsequently, X added more advertisers, including Twitch, as defendants in the suit. An amended complaint has now expanded the lawsuit to include Nestlé, Abbott Laboratories, Colgate, Lego, Pinterest, Tyson Foods, and Shell.
The lawsuit alleges that the WFA coordinated an advertiser boycott of Twitter through GARM to pressure Twitter to comply with GARM’s Brand Safety Standards. This led to a decrease in ad purchases on Twitter, affecting X’s advertising revenue significantly.
In addition to the legal battle, reports have surfaced that X’s owner, Elon Musk, expressed concerns about the company’s stagnant user growth and unimpressive revenue, stating that they are barely breaking even.
Overall, the situation is complex and continues to evolve as more players get involved in the legal dispute.
