Elon Musk's X has broadened a lawsuit originally filed in Texas to include more major brands accused of boycotting the platform after Musk's acquisition. The amended complaint names additional defendants, alleging that the World Federation of Advertisers motivated companies like Lego and Nestle to halt or reduce ad spending due to concerns over brand safety. X claims these actions led to significant financial losses, depriving the platform of billions in advertising revenue. The lawsuit argues that collective advertiser actions restrict competition and undermine consumer interests in social media advertising practices.
Collective action among competing advertisers to dictate brand safety standards to be applied by social media platforms shortcuts the competitive process and allows the collective views of a group of advertisers with market power to override the interests of the consumer.
The complaint alleges that the World Federation of Advertisers was concerned that X, formerly known as Twitter, would stray from its brand safety initiative called the Global Alliance for Responsible Media.
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