Elon Musk declares legal war on former advertisers

The case: lawsuit against former advertisers

Elon Musk has announced that he will sue former advertisers of his Platform X. He accuses them of conspiring against his platform to prevent millions of dollars in advertising revenue. Those affected include the World Federation of Advertisers, Unilever, Mars, CVS Health and Ørsted A/S. According to Musk, these companies and associations organized a “group boycott” against X.

The lawsuit is also directed against the Global Alliance for Responsible Media (Garm), to which the defendant companies belong. X is also a member of this organization. With the lawsuit,

Background and context: Ethical standards as a pretext?

Interestingly, X itself is a member of the Global Alliance for Responsible Media (Garm), which is committed to ethical standards in advertising. Musk now claims these standards are being used as an excuse to boycott and harm his platform. This is an attempt to force X to comply with these standards.

Outrage and cynicism: Musk against the advertising industry

Musk's actions seem particularly cynical considering that he had previously publicly lambasted the advertising industry. After taking over Twitter, Musk brought avowed racists and conspiracy theorists back to the platform, causing many advertisers to stop their campaigns. (We HERE .) Musk responded with insults and rude comments.

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Further information: Falling revenue and legal doubts

Platform While Musk is suing advertisers, experts doubt he will be successful. Advertisers could rely on freedom of expression and freedom of the press, which Musk himself likes to invoke.

Here is some additional information:

• Criticism of Garm: The US House of Representatives Judiciary Committee shares Musk's criticism of Garm and describes their coordinated actions as possibly illegal under antitrust law.
• Return of banned users: Musk's decision to bring back banned users such as racists and conspiracy theorists led to a significant loss of image and the withdrawal of many advertising customers.
• Legal battle with CCDH: X has already lost a lawsuit against the Center for Countering Digital Hate (CCDH) as the US district judge dismissed the lawsuit in response to criticism.
• Rumble joins: The video platform Rumble , which is considered a playground for the alt-right movement , has joined the lawsuit against the advertising industry and criticizes Garm's ethical advertising standards.
• Media Matters: Media Matters had proven how right-wing extremist, anti-Semitic and racist content as well as hate speech spread on X. Musk also saw this as a conspiracy. The trial begins in April 2025.

questions and answers

Question 1: What did Elon Musk really say about the advertising industry?
Answer 1: Musk literally said “Go fuck yourself” to the advertising industry at a New York Times conference.

Question 2: How have officials responded to Musk's criticism of Garm?
Answer 2: The Judiciary Committee of the US House of Representatives shares Musk's criticism and describes Garm's actions as possibly inadmissible under antitrust law.

Question 3: What are the consequences of the false accusations?
Answer 3: The return of the blocked users and Musk's controversial statements led to a significant loss of image and the withdrawal of many advertising customers.

Question 4: Why did Rumble join the lawsuit?
Answer 4: Rumble accuses the advertising industry of forming a “cartel” and criticizes Garm’s ethical advertising standards as “arbitrary.”

Question 5: What financial losses did X suffer?
Answer 5: X has lost almost two-thirds of its value since Musk took over, and revenue in the second quarter of 2024 was $114 million, a decline of 25 percent from the first quarter.

Conclusion: Musk is fighting against reality

Elon Musk has opened a new battlefield: the courtrooms. His lawsuits against former advertisers are based on shaky arguments and are unlikely to be successful. The real reason for X's financial decline is the controversial decisions and public gaffes of Musk himself. The chances are good that this lawsuit will also fail and Musk's aggressive tactics will further harm the platform.

Source: derStandard

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