X, the social media platform formerly known as Twitter, has significantly broadened its antitrust lawsuit, adding several high-profile advertisers to its legal battle over what CEO Linda Yaccarino has described as a “systematic illegal boycott.” The lawsuit initially targeted the World Federation of Advertisers (WFA) and its brand safety initiative, the Global Alliance for Responsible Media (GARM), in August 2024. Now, an amended complaint includes major corporations such as Nestlé, Abbott Laboratories, Colgate, Lego, Pinterest, Tyson Foods, and Shell.
The lawsuit alleges that the WFA orchestrated an advertiser boycott of X through GARM, aiming to pressure the platform into adopting GARM’s Brand Safety Standards. According to the complaint, this alleged boycott led to significant financial harm for X, with at least 18 GARM-affiliated advertisers halting their ad purchases on the platform between November and December 2022. Additionally, other advertisers reportedly slashed their spending substantially during the same period.
“The majority of X’s advertising revenue today comes from small- and medium-sized businesses that are not GARM members or clients of GARM-member advertising agencies,” the complaint states. “As demand for advertising on X has declined as a result of the boycott, the price X’s remaining advertisers are willing to pay has also declined.”
The lawsuit further claims that ad prices on X remain significantly lower than those charged by its closest competitors in the social media advertising market. This, the complaint argues, means that boycotting advertisers are missing out on “a valuable opportunity to purchase low-priced advertising inventory on a platform with brand safety that meets or exceeds industry standards.”
The WFA disbanded GARM shortly after the initial lawsuit was filed, citing “recent allegations that unfortunately misconstrue its purpose and activities” as a drain on its resources and finances. However, the organization’s CEO reportedly vowed to fight the lawsuit and prove its adherence to competition rules.
This legal action is not the only sign of challenges facing X. In January 2025, owner Elon Musk reportedly told employees that the company is struggling, with “user growth stagnant, revenue unimpressive, and we’re barely breaking even.”
The expanded lawsuit underscores the ongoing tensions between X and the advertising industry, as the platform seeks to rebuild its business amid shifting market dynamics and reputational challenges.
