Elon Musk vows legal action against major companies in response to an advertising boycott targeting right-leaning media, alleging collusion and revenue impact on his social media platform X.
Billionaire Elon Musk has escalated his battle against what he calls an “advertising boycott racket” orchestrated by a coalition of global companies, threatening legal action in response to a perceived revenue squeeze at his social media platform X.
Musk, who acquired Twitter (now X) for $44 billion in 2022, made his intentions clear following a video of Ben Shapiro’s Congressional testimony alleging advertiser collusion against conservative platforms. In a statement on X, Musk cited evidence from Congress and announced plans to sue those involved in the alleged advertising boycott and collaboration. He also suggested the possibility of criminal prosecution by states.
The focus of the controversy lies with the Global Alliance for Responsible Media (GARM), an initiative led by the World Federation of Advertisers (WFA), which includes corporate giants like Disney, Coca-Cola, Toyota, and Hershey. GARM aims to address concerns over harmful content on digital platforms and its monetization through advertising, representing approximately 90% of global ad spending, nearly totaling $1 trillion annually.
A Congressional interim staff report, preceding Shapiro’s testimony, highlighted contentious conduct within GARM, particularly involving GARM chief Robert Rakowitz. Despite Rakowitz denying organizing a boycott, internal communications suggested otherwise, with references to X falling significantly below revenue forecasts following GARM’s actions.
The report also outlined instances of bias against conservative media outlets, including strategies discussed by executives to restrict content from outlets like Fox News, The Daily Wire, and Breitbart News based on ideological differences.
In response to Musk’s post, neither GARM, GroupM (the world’s largest media buying agency implicated in the report), nor X immediately commented on the allegations.
Shapiro, in his Congressional statement, urged legislative oversight on what he described as “censorship cartels” like GARM, advocating for measures to curb what he perceives as biased actions against conservative viewpoints.
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