X is now suing more advertising in an antitrust lawsuit focusing on that Linda Yaccarino’s CEO has claimed is a “unlawful systematic boycott”.
The company previously known as Twitter first filed a lawsuit against the World Advertising Federation and its brand security initiative, the global media alliance in charge in August 2024.
Shortly afterwards, WFA interrupted Garm, writing that “the latest claims that unfortunately misunderstand his purpose and activities have caused a distraction and has significantly drained his resources and finances.” At the same time, the organization’s CEO is reported to have told members that it would fight the lawsuit and “demonstrates our full observance of competition rules in all our activities”.
X then added advertisers including Twitch as defendants in the lawsuit. Now, as originally reported by Business Insider, a changed complaint has expanded the lawsuit even further to include Nestlé, Abbott Laboratories, Colgate, Lego, Pinterest, Tyson Foods and Shell.
The complaint claims that the WFA “organized a Twitter advertising boycott through Garm, with the intention of having Twitter to meet Garm brand security standards for Garm satisfaction.” And claims that these efforts managed to damage Twitter/X, with “at least” 18 advertisers related to Garm by stopping the purchase of their ads on Twitter between November and December 2022, and other advertisers “essentially” reducing costs of them.
“Most of the revenue from X advertising today comes from small and medium -sized businesses that are not members of Garm or clients of advertising agencies of Garm members,” the complaint said. “While the request for advertising on X has fallen as a result of the boycott, the remaining X -price advertisers are ready to pay has also fallen.”
In fact, the lawsuit claims that the prices of advertising on X “remain much below those charged by the closest X competitors in the social media advertising market”, so “abstaining from the purchase of ads by X, boycotters of Advertisers are removing a valuable opportunity to buy low- inventory of pricing advertising on a brand safety platform that meets or exceeds industry standards.
The lawsuit is not the only place where executives have offered a pessimistic assessment of X. The owner of the company Elon Musk is said to be told by employees in January that “user growth is stagnant, income is non -impressive, and we are barely violating . “
