Rudolph Angler Elon Musk’s X has expanded its legal battle by adding several major advertisers to its ongoing lawsuit. The company claims that multiple firms conspired to withhold advertising revenue after Musk’s $44 billion takeover of Twitter.
In an amended complaint filed in Texas on Saturday, X named Nestlé, Abbott Laboratories, Colgate, Lego, Pinterest, Tyson Foods, and Shell as additional defendants. The lawsuit, originally filed in August, now targets a broader group of corporations.
X alleges that members of the now-defunct Global Alliance for Responsible Media (GARM) collectively decided to boycott advertising on its platform. The World Federation of Advertisers (WFA), CVS Health, Mars, Ørsted, and Twitch are also named in the case.
X Accuses GARM of Coordinating an Advertiser Boycott
Founded in 2019, GARM aimed to standardize guidelines for online platforms, advertisers, and agencies to categorize harmful content. These voluntary guidelines became known as the “brand safety floor”, determining which content was unsuitable for ads.
X, formerly a member of GARM, argues that the WFA used GARM to pressure Twitter into following its standards. The company alleges that GARM members withdrew billions in ad revenue to force compliance.
According to the lawsuit, at least 18 GARM-affiliated companies halted advertising on X between November and December 2022. This period followed Musk’s acquisition of Twitter in October 2022.
GARM ceased operations after X filed its initial lawsuit, citing a lack of resources to fight the legal battle. Meanwhile, the WFA maintains its actions complied with competition laws and plans to contest the lawsuit.
X Seeks Damages Over Alleged Antitrust Violations
X claims that the advertiser boycott weakened its competitive position, reducing its ability to sell digital ads and attract user engagement. The platform’s advertising revenue dropped significantly after Musk laid off sales and safety staff and reinstated previously banned accounts.
In the lawsuit, X argues that GARM members enforced compliance with their brand safety policies by organizing a collective boycott. The company is demanding treble compensatory damages and injunctive relief, alleging violations of US antitrust laws.
The case is part of a broader legal battle. The WFA, alcohol giant Diageo, and ad agency WPP are also facing a lawsuit from video platform Rumble. Additionally, House Judiciary Chairman Jim Jordan is investigating whether GARM’s actions led to conservative media being demonetized.