| Ticker | Status | Jurisdiction | Filing Date | CP Start | CP End | CP Loss | Deadline |
|---|
| Ticker | Case Name | Status | CP Start | CP End | Deadline | Settlement Amt |
|---|
| Ticker | Name | Date | Analyst Firm | Up/Down | Target ($) | Rating Change | Rating Current |
|---|
Elon Musk, the owner of social media platform X, has announced his intention to take legal action against those he accuses of unlawfully avoiding advertising on social media platforms.
What Happened: Musk, in response to a video of Ben Shapiro‘s congressional testimony, alleged that certain companies were participating in an illegal advertising boycott.
Shapiro claimed that Democrats were instructing advertising-based platforms to enforce content standards that restrict the circulation of conservative information.
“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 stated on his platform. “Hopefully, some states will consider criminal prosecution.”
Shapiro accused the late Sen. Dianne Feinstein in 2017 of pressuring Twitter, which is now X, Google‘s parent company Alphabet Inc. and Meta Platforms Inc.’s Facebook to adopt guidelines from the Global Alliance for Responsible Media (GARM), a unit of the World Federation of Advertisers.
These standards aim to address “harmful” content on digital media platforms and its monetization through advertising.
Shapiro informed lawmakers that GARM functions as a “cartel,” with its members’ contributions accounting for 90% of ad spending in the U.S.
Why It Matters: This legal move by Musk is the latest in a series of high-profile conflicts involving the billionaire. In 2023, Musk engaged in public disputes with several prominent figures, including Meta CEO Mark Zuckerberg and The Walt Disney Co. CEO Bob Iger. These confrontations have kept Musk in the spotlight, reflecting his combative approach to business and regulation.
Earlier this year, Musk disclosed the surprisingly low advertising costs on his social media platform, X. However, the platform has been facing challenges, with slowing user growth and increased competition from Meta’s Threads.
Moreover, Musk recently announced the suspension of ad revenue sharing for certain X creators due to bot spamming. These developments have put X in the spotlight, and Musk’s decision to take legal action against the alleged advertising boycott could have significant implications for the platform and the industry at large.
Read Next:
Image Via Flickr
This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote
