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Musk launches antitrust lawsuit against advertiser cartel
(MENAFN) Elon Musk has escalated his battle against what he describes as an illegal advertiser boycott by filing an antitrust lawsuit against the Global Alliance for Responsible Media (GARM). The lawsuit, filed on Tuesday in Texas, also includes video hosting platform Rumble as a co-plaintiff. The legal action accuses GARM of orchestrating a coordinated effort to undermine and demonetize X (formerly Twitter), a claim that follows recent findings by the United States House of Representatives’ Judiciary Committee.
The Judiciary Committee's report, released last month, revealed evidence suggesting that GARM had engaged in activities aimed at harming "disfavored platforms" by pushing for their exclusion from advertising revenue and other financial support. In response, Musk took to X to declare a "war" against what he perceives as an anti-competitive cartel. "We tried being nice for 2 years and got nothing but empty words. Now, it is war," Musk declared, alongside a post from Rumble CEO Chris Pavlovski announcing his platform's involvement in the lawsuit.
Linda Yaccarino, CEO of X, addressed the platform's users in an open letter, condemning GARM’s actions as a "stain on a great industry" and emphasizing that such behavior "cannot be allowed to continue." Yaccarino highlighted X’s efforts to address concerns raised by GARM and other advertiser groups, asserting that the company had not only met but exceeded the demands made by these organizations. Despite these efforts, she noted, many companies chose to ignore the improvements and evidence presented by X.
The lawsuit names several prominent defendants, including GARM, the World Federation of Advertisers, and individual GARM members such as CVS Health, Mars, Orsted, and Unilever. The legal action seeks treble damages, aiming to recover compensation for the alleged financial harm caused by the boycott. The complaint could potentially expand to include additional defendants as the legal process unfolds and more evidence is gathered.
Musk's lawsuit represents a significant confrontation between the tech industry and major advertisers, highlighting ongoing tensions over digital advertising practices and platform monetization.
The Judiciary Committee's report, released last month, revealed evidence suggesting that GARM had engaged in activities aimed at harming "disfavored platforms" by pushing for their exclusion from advertising revenue and other financial support. In response, Musk took to X to declare a "war" against what he perceives as an anti-competitive cartel. "We tried being nice for 2 years and got nothing but empty words. Now, it is war," Musk declared, alongside a post from Rumble CEO Chris Pavlovski announcing his platform's involvement in the lawsuit.
Linda Yaccarino, CEO of X, addressed the platform's users in an open letter, condemning GARM’s actions as a "stain on a great industry" and emphasizing that such behavior "cannot be allowed to continue." Yaccarino highlighted X’s efforts to address concerns raised by GARM and other advertiser groups, asserting that the company had not only met but exceeded the demands made by these organizations. Despite these efforts, she noted, many companies chose to ignore the improvements and evidence presented by X.
The lawsuit names several prominent defendants, including GARM, the World Federation of Advertisers, and individual GARM members such as CVS Health, Mars, Orsted, and Unilever. The legal action seeks treble damages, aiming to recover compensation for the alleged financial harm caused by the boycott. The complaint could potentially expand to include additional defendants as the legal process unfolds and more evidence is gathered.
Musk's lawsuit represents a significant confrontation between the tech industry and major advertisers, highlighting ongoing tensions over digital advertising practices and platform monetization.
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