Elon Musk X is currently involved in an antitrust lawsuits against brands such as Unilever and CVS, while CEO Linda Yaccarino advocates for industry-wide reform.
Several major brands and an ad industry organization are being targeted by Elon Musk X, in an antitrust lawsuit. Linda Yaccarino, the CEO and a former advertising executive, stated in a statement that the lawsuit is intended to identify and penalize those responsible for “illegal coordinated efforts” against the platform.
Elon Musk X Pursues Antitrust Case
Linda Yaccarino, the CEO of X (formerly known as Twitter), has recently intensified her efforts to implement significant changes in the advertising industry, according to a report by Axios. Yaccarino observed that the company is resolute in its determination to pursue the antitrust lawsuit against an industry association and several significant brands, despite the fact that one of the defendants in the lawsuit has recently ceased operations.
The lawsuit, which has garnered significant attention in the advertising sector, asserts that CVS Health, Mars, Orsted, and Unilever are exploiting their market dominance to disadvantage X and other conservative media outlets.
X WILL CONTINUE TO PURSUE ANTITRUST LITIGATION AGAINST SEVERAL MAJOR BRANDS AND AN AD INDUSTRY GROUP- AXIOS
— *Walter Bloomberg (@DeItaone) August 13, 2024
Linda Yaccarino, who has been involved in the advertising industry for over a decade, conveyed her apprehension regarding the purported orchestration by a small number of influential advertisers. She emphasized the necessity of decentralization and autonomy in the industry, advocating for a “systemic overhaul and a clean slate” to prevent a small number of companies from controlling the advertising process.
GARM ceases operations due to legal pressure
Last week, the Global Alliance for Responsible Media (GARM), one of the primary defendants in the lawsuit, ceased operations. The organization attributed the decision to financial losses associated with the legal battle against Elon Musk X platform accused GARM, a body established to address the challenges of illicit or negative content on digital media, of orchestrating a systematic exclusion that reduced the platform’s advertising revenue by $4 billion.
Yaccarino maintains that the decision to pursue legal action was not hasty; rather, it was justified by evidence presented by the Republican-led House Judiciary Committee. This evidence suggested that there was unlawful coordination against Elon Musk X platform and other conservative media organizations. Although the closure of GARM is a significant setback, the platform has continued to advance the cause of accountability and reform in the advertising industry.
Vice President Kamala Harris was extended an invitation by Linda Yaccarino to participate in a similar interview on Elon Musk X platform, much like Musk did. She declared that Harris would have the freedom to select the individual with whom she wishes to conduct the interview, and that the invitation remains “wide open.”
Interview with Musk and Trump
The lawsuit’s impetus is coinciding with a contentious interview between former President Donald Trump and Elon Musk on X. Yaccarino characterized the interview as a “seminal” moment due to the fact that it garnered millions of views, as per a Coingape report.
Nevertheless, the European Union (EU) has expressed concern regarding the potential for the platform to disseminate “harmful content,” particularly in the wake of the Musk-Trump interview. The EU Commission emphasized the responsibilities of X under the DSA in the letter it sent to Musk and urged the platform to improve the moderation of content, particularly during periods of increased sensitivity and potential polarization.
Concurrently, the United Auto Workers (UAW) union has initiated federal labor proceedings against Donald Trump and Elon Musk. The two leaders are accused of attempting to coerce workers during their recent appearance on the platform, according to the allegations that were submitted to the National Labor Relations Board.
According to the UAW, Musk and Trump made statements that could be perceived as menacing to workers who are exercising their rights, including the right to strike. Shawn Fain, the President of the United Auto Workers (UAW), who is an opponent of Musk and Trump, criticized their comments during the interview, asserting that they were attempting to undermine the rights of workers.
