X Corp., the Elon Musk-owned tech company that owns X (formerly Twitter), is suing a group of advertisers, alleging the advertisers conspired to "withhold billions of dollars in advertising revenue" from the social media platform. The lawsuit, which was filed today in the United States District Court for the Northern District of Texas, as spotted by The New York Times , argues that the Global Alliance for Responsible Media (GARM), four of its members: CVS Health, Mars, Orsted, and Unilever, and the World Federation of Advertisers, accusing this coalition of advertisers for pausing advertisements on X after it was acquired by Musk in 2022.
We tried peace for 2 years, now it is war https://t.co/elgT62uDtF — Elon Musk (@elonmusk) August 6, 2024 "We tried peace for 2 years, now it is war," Musk wrote in a post published today on X/Twitter. X CEO Linda Yaccarino also published an open letter on X/Twitter , announcing the company's plan for legal action against these advertisers.
Yaccarino cited the House Judiciary Committee's report on GARM and how the organization sought to control online speech. The House Judiciary's report notes that evidence it obtained showed "that GARM and its members directly organized boycotts and used other indirect tactics to target disfavored platforms, content creators, and news organizations in an effort to demonetize and, in effect, limit certain choices for consumers." In a separate post, Yaccarino published a video explaining the company's decisi.