Elon Musk announces that he is suing major advertising groups, accusing them of boycotting X and threatening the future of the company. What does he accuse them of?
Elon Musk and X sue advertisers
The group targeted in particular is the Global Alliance for Responsible Media (GARM). This initiative of the world federation of advertisers would have, according to Elon Musk, discreetly organized a boycott of X, in order to “collectively deprive billions of dollars in advertising spending” the platform.
In 2022, the acquisition of Twitter (now X) by Elon Musk was followed by numerous withdrawals from advertising organizations, who feared seeing their advertisements alongside problematic content. A second wave of departures also followed Elon Musk's relay of an anti-Semitic conspiracy theory in 2023At the time, Elon Musk sent a clear message to advertisers: “Screw you ! “.
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Furthermore, Elon Musk had cut a large part of X's moderation capacities when he arrived at the head of the company. Since then, users have reported a sharp increase in bots and the spread of false information and hate speech.For all these reasons, the company had had difficulty attracting new advertisers since its acquisition.
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“Now it's war”
Elon Musk has announced that he is going to war against advertisers, who according to him are depriving X of billions of dollars in revenue. because of their choice to leave the platform.
We tried peace for 2 years, now it is war https://t.co/elgT62uDtF
— Elon Musk (@elonmusk) August 6, 2024
X CEO Linda Yaccarino also posted a video about X in which she explains the company's positioning:
“A group of companies organized a systematic boycott of X. […] Today, we are continuing the Global Alliance for Responsible Media for their actions.”
Among the major groups targeted, which are part of the global federation of advertisers, we find Unilever, CVS Health and Mars. According to Linda Yaccarino, their boycott “threatens our ability to thrive in the future”.
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Elon Musk is taking legal action this week. A day earlier, he had announced that he was filing a complaint against OpenAI, Sam Altman's company.. He accuses him of having betrayed the company's initial mission. As a reminder, Elon Musk has had his own artificial intelligence company, xAI, since 2023.
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Source: Elon Musk via X
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A journalist at Cryptoast since 2017, I am passionate about the issues of decentralization, privacy and regulation. I specialize in traditional economics and finance, analyzing how news from this sector influences the cryptocurrency sector, offering a unique and informed perspective to Cryptoast readers.
Marine Debelloir
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