In a notable development, Elon Musk’s X has dropped consumer goods giant Unilever from an antitrust lawsuit that accused several advertisers of conspiring to boycott the platform. This lawsuit, originally filed in August, alleged that Unilever, along with other major corporations like Mars, CVS Health, and Orsted, collaborated with the World Federation of Advertisers (WFA) to withhold billions of dollars in advertising revenue from X, resulting in a significant revenue loss for the social media platform.
The core of X’s complaint stemmed from the concern that advertisers reduced spending due to brand safety issues, particularly after Musk’s acquisition of Twitter (now X) in October 2022. Many companies, including Unilever, reportedly feared their ads would be placed next to harmful content, such as racist or misleading posts, which would have been removed under the platform’s previous management. The WFA had launched an initiative back in 2019 to address this issue, focusing on how harmful content could be monetised through digital advertising.
On October 11, 2024, X officially withdrew its claims against Unilever in a filing made at a federal court in Wichita Falls, Texas. The dismissal followed a settlement between X and the London-based company, though neither party disclosed the terms of the agreement. In a statement, Unilever, whose portfolio includes well-known brands like Dove, Pepsodent, and Hellmann’s, acknowledged the settlement, noting that X had committed to meeting its responsibility standards to ensure the safety and performance of its brands on the platform.
X, for its part, expressed satisfaction with the agreement, stating that it was pleased to continue its partnership with Unilever. However, the company made it clear that the legal battle is far from over, as it continues to pursue its antitrust claims against the remaining defendants, which include Mars, CVS Health, and Danish renewable energy company Orsted. The WFA and these companies have yet to publicly respond to the lawsuit or comment on its ongoing developments.
The lawsuit reflects the broader challenges X has faced since Musk’s acquisition. Ad revenues reportedly slumped for months, with advertisers increasingly concerned about brand safety issues. The platform’s legal efforts against the alleged boycott aim to reclaim some of the lost revenue and address what it sees as unfair collusion among major advertisers.
Despite resolving its dispute with Unilever, X remains locked in a legal confrontation with other global advertisers. The resolution of these claims will be critical for the platform as it seeks to restore advertiser confidence and stabilise its revenue stream.