X Brings Antitrust Lawsuit Against Advertising Group
X Brings Antitrust Lawsuit Against Advertising Group
The Facts
X (formerly Twitter) Tuesday sued the World Federation of Advertisers (WFA) and firms like Unilever and Mars saying they dissuaded brands from advertising on X.X (formerly Twitter) filed an antitrust lawsuit in Texas federal court on Tuesday against the World Federation of Advertisers (WFA) and several other major companies, including Unilever, Mars, CVS Health, and Orsted.
The suit filed in Texas's northern district alleged they violated antitrust laws to orchestrate a "massive advertiser boycott," causing it billions of dollars in loss.The lawsuit accuses the companies of violating antitrust laws by orchestrating a "massive advertiser boycott," resulting the loss of billions of dollars of advertising revenue.
The Spin
The WFA and other companies engaged in an advertising boycott racket. This was a coordinated effort to demonetize and limit certain platforms, content creators, and news organizations. This conspiracy cost X billions of dollars in ad revenue and was an unfair anti-competitive tactic aimed at limiting certain viewpoints.
It will be very hard for X to prove that advertisers were engaged in a boycott and it is up to the company's lawyers to show that there was an actual agreement to boycott joined by each advertiser. Even if X wins this case, companies cannot be forced to advertise on X., Xwhich isisn't not automatically guaranteed the money or business of advertisers. Besides, the truth is that advertisers left the platform due to Musk's gross mismanagement of the company.
