X to sue certain boycotting advertisers following damning Congressional hearing
What's the story
Elon Musk has declared his intention to sue those involved in an advertising boycott against X. This comes after a report from the House Judiciary Committee, revealed that a coalition created by the World Economic Forum (WEF) has been targeting X, since Musk purchased the platform. The boycott grew ferociously after US-based group Media Matters published a report last year, alleging that X posted ads were appearing next to pro-Nazi posts.
Scenario
WEF coalition commands over 90% of global ad expenditure
The WEF coalition includes the World Federation of Advertisers (WFA) and its Global Alliance for Responsible Media (GARM) initiative. WEF members represent prominent advertisers, responsible for around 90% of global advertising expenditure. The House Judiciary Committee report states that GARM's far-left leader and co-founder, Rob Rakowitz sought to punish X after Musk's takeover. He instructed corporate members of GARM to "cease all paid advertisements" on X. Rakowitz also "bragged" that X's revenue was "80% below forecasts" after its effort.
Prosecution push
Musk advocates for criminal prosecution of boycott participants
Confirming the legal action, Musk stated on X, "Having seen the evidence unearthed today by Congress, X has no choice but to file suit against the perpetrators and collaborators in the advertising boycott racket." Musk has also voiced his hope that some states would consider criminal prosecution for those participating in the boycott. The lawsuit is Musk's response to what is perceived as a deliberate attempt to destabilize his platform through an organized advertising boycott.
Twitter Post
Lawsuit coming against all "perpetrators and collaborators"
Having seen the evidence unearthed today by Congress, 𝕏 has no choice but to file suit against the perpetrators and collaborators in the advertising boycott racket.
— Elon Musk (@elonmusk) July 11, 2024
Hopefully, some states will consider criminal prosecution. https://t.co/5W4yf1wxVO
Information
Specifics of Musk's lawsuit remain undisclosed as of now
The House Judiciary Committee report states that GARM's "alarming" censorship activities "rob consumers of choices" and "threaten fundamental American freedoms." Meanwhile, the specifics of the Musk's lawsuit and the identities of those being sued remain undisclosed at this time.