Billionaire entrepreneur Elon Musk has intensified his legal battle against the World Federation of Advertisers (WFA) over an alleged coordinated boycott of advertising on his social media platform, X. Originally filed last year in a Texas federal court, the lawsuit initially targeted the WFA, CVS, and Twitch. However, Musk’s legal team has now expanded the case to include Nestlé, Lego, Tyson Foods, Abbott Laboratories, Colgate-Palmolive, Pinterest, and Shell International.
Dispute Over Platform Changes
The controversy stems from Musk’s acquisition of X, formerly known as Twitter, and subsequent policy changes. These included reinstating previously banned accounts, removing content moderation teams, and dismantling the human rights division responsible for combating political manipulation. As a result, major corporations withdrew their advertising, citing concerns over content quality and brand safety.
The ad boycott significantly impacted X’s revenue, as only small and mid-sized businesses continue to advertise on the platform. Musk claims this was an orchestrated effort to manipulate industry standards and harm his company financially. His lawsuit argues that competing advertisers should not collectively dictate brand safety standards in a way that undermines free market dynamics.