X, formerly known as Twitter, launched a high-profile antitrust lawsuit against the Global Alliance for Responsible Media (GARM), the World Federation of Advertisers (WFA), and major corporations CVS Health, Mars, Orsted, and Unilever. The lawsuit, announced via an open letter from X’s CEO Linda Yaccarino on August 6, 2024, accuses these entities of orchestrating an “illegal boycott” against X and other companies.
The lawsuit follows a contentious period marked by Musk’s attempts to improve relations with advertisers at the Cannes Lions festival. “The illegal behaviour of these organisations and their executives costs X billions of dollars,” Yaccarino stated.
The open letter alleges that GARM and the WFA are engaged in unlawful practices aimed at undermining X’s position in the market. GARM, a cross-industry initiative formed in 2019 to tackle harmful content on digital platforms, and the WFA have yet to comment publicly on the suit.
Louis P. Di Lorenzo, a partner at law firm Davis + Gilbert with a specialisation in advertising and marketing, highlighted the complexity of antitrust cases involving trade associations. “Every industry has their own trade associations, and they do have to be careful. Typically, for a trade association, there will be rules and standards about what can be discussed, what can be on the agenda, and making sure that nothing is being done for an unlawful purpose,” said Di Lorenzo.
The legal challenge for X will be proving that the boycott was more than a moral stance and constituted anti-competitive behaviour.
As the lawsuit progresses, the implications for X and the named advertisers are still unfolding.
