Elon Musk’s X (formerly Twitter) has widened its lawsuit, taking on more big brands over what it claims was an illegal ad boycott that cost the platform billions. Initially filed in 2023 against the World Federation of Advertisers (WFA) and companies like CVS and Twitch, the lawsuit now includes Lego, Nestlé, Tyson Foods, Abbott Laboratories, Colgate-Palmolive, Pinterest, and Shell International.
X alleges that after Musk acquired Twitter in 2022, WFA and its members pulled their ads or slashed spending over concerns that Musk wouldn’t adhere to brand safety standards set by WFA’s Global Alliance for Responsible Media (GARM). The company argues that advertisers didn’t just leave individually but worked together to pressure X into following external content moderation policies.
Not long after the lawsuit was filed, WFA shut down GARM, calling it a ‘distraction.’ Whether that was a strategic retreat or an attempt to move on quietly remains unclear.
The newly named brands haven’t responded to the lawsuit yet, but the case could redefine the balance of power between social media platforms and advertisers. If X prevails, it could challenge the way brands control ad spending across digital platforms. If not, advertisers may feel even more emboldened to dictate terms. One thing is certain: Musk isn’t one to let a fight go unanswered.