In February 2025, X (formerly Twitter) expanded its ongoing antitrust lawsuit. The company now includes major companies like Lego, Nestlé, Pinterest, and others. X accuses these companies of being part of a "systematic illegal boycott."

The lawsuit, filed in August 2024, originally targeted the World Federation of Advertisers (WFA). It also named the Global Alliance of Responsible Media (GARM), which was responsible for the boycott. According to X's CEO Linda Yaccarino, these organizations worked to coerce X into adhering to GARM's “Brand Safety Standards.”

X claims that this boycott harmed the platform. At least 18 GARM-affiliated advertisers stopped or reduced their ad purchases between November and December 2022. The company argues that these actions led to a significant drop in advertising demand.

As a result, X now charges advertisers well below the prices set by its competitors. The platform’s remaining advertisers are paying lower rates due to the decline in demand. X insists that these advertisers are missing out on "low-priced advertising inventory" on a platform that meets or exceeds industry brand safety standards.

X is also facing financial struggles. Elon Musk, the owner of X, admitted in January 2025 that the company is experiencing stagnant user growth. He added that revenue is unimpressive and that the company is "barely breaking even."

The outcome of this lawsuit could have a significant impact on the digital advertising industry. More advertisers may follow the example of those named in the lawsuit, potentially altering the landscape of social media advertising.

SOURCE: TECHCRUNCH | PHOTO: REUTERS

This article was created with AI assistance.