SAN FRANCISCO, CALIF – X, the social media platform known for hosting global, real-time conversations, has filed an antitrust lawsuit against the Global Alliance for Responsible Media (GARM), the World Federation of Advertisers (WFA), and several major companies, including CVS Health, Mars, Orsted, and Unilever. The lawsuit alleges that these organizations participated in an illegal boycott that targeted X and other platforms, creators, and news organizations.
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The lawsuit follows a report by the U.S. House of Representatives Judiciary Committee, titled “GARM’s Harm,” which found evidence of organized boycotts by GARM and its members. According to the report, these boycotts aimed to demonetize certain platforms and limit consumer choices, effectively undermining the marketplace of ideas.
“The consequence—perhaps the intent—of this boycott was to seek to deprive X’s users, be they sports fans, gamers, journalists, activists, parents, or political and corporate leaders, of the Global Town Square,” said the CEO of X, who joined the company in June 2023. The CEO added that the illegal actions by these organizations have cost X billions of dollars in revenue.
The CEO, who has a background in media and advertising, expressed concern over the impact of these boycotts on free speech and the diversity of viewpoints online. “People are hurt when the marketplace of ideas is undermined, and some viewpoints are not funded over others as part of an illegal boycott,” they said.
Despite the challenges posed by the alleged boycotts, X reports record-high user engagement. The platform has seen a 25% increase in user active minutes, rising from 7.2 billion in August 2022 to over 9 billion today. Daily video views have also surged by 45% year-over-year, reaching 8.2 billion.
X claims to have developed new tools to meet the demands of advertisers and groups like GARM, enhancing advertiser controls and product effectiveness. The CEO emphasized their commitment to providing a safe and effective platform for advertisers to reach their target audiences.
However, the lawsuit argues that many companies dismissed X’s efforts and continued to engage in the alleged illegal activities. “To those who broke the law, we say enough is enough. We are compelled to seek justice for the harm that has been done by these and potentially additional defendants, depending on what the legal process reveals,” said the CEO.
X aims to use the lawsuit to address and correct what it describes as a “broken ecosystem” that allows illegal activities to occur. The CEO reassured users and stakeholders that X remains committed to innovation and maintaining a vibrant platform while pursuing legal action against those responsible for the alleged misconduct.
“We will continue to innovate and ensure X has a vibrant future while the courts hold accountable those who engaged in illegal behavior,” the CEO stated. “To all of you who have been part of the transformative journey we are on, thank you. Rest assured, we will not stop defending our global town square.”
