Useful information
Prime News delivers timely, accurate news and insights on global events, politics, business, and technology
X is now demanding more advertisers in an antimonopoly demand centered on what the company’s CEO, Linda Yaccarino, has stated is an “systematic illegal boycott.”
The company previously known as Twitter presented for the first time the demand against the World Federation of advertisers and its brand security initiative the global alliance of the media responsible in August 2024.
Shortly after, the wfa Garm discontinuedwriting that “recent accusations that unfortunately misunderstand their purpose and activities have caused a distraction and significantly drained their resources and finance.” At the same time, the CEO of the organization As reported, members told the members that would fight demand and “demonstrate our full adhesion to the rules of competition in all our activities.”
X subsequently added advertisers including Twitch as accused in the lawsuit. Now, as initially Informed by Business Insidera amended complaint He has extended the demand even more to include Nestlé, Abbott Laboratories, Colgate, Lego, Pinterest, Tyson Foods and Shell.
The complaint alleges that the WFA “organized a Twitter boycott advertiser through Garm, with the aim of coercing Twitter to meet the safety standards of the GARM brand for GARM satisfaction.” And he states that these efforts managed to damage Twitter/X, with “at least” 18 advertisers affiliated with Garm who stopped their purchase of ads on Twitter between November and December 2022, and other advertisers “substantially” reduce their expenses.
“The majority of X’s advertising today comes from small and medium-sized companies who are not members of Garm or customers of Garm-Member advertising agencies,” says the complaint. “As the demand for advertising in X has decreased as a result of the boycott, the remaining advertisers of the price X are willing to pay has also decreased.”
In fact, the demand affirms that the advertising prices in X “remain well below those charged by the closest competitors of X in the social networks advertising market”, so “when refraining from buying advertising from X, the X, the Boicating advertisers are renouncing a valuable opportunity to buy under “advertising inventory with a price on a brand security platform that meets or exceeds industry standards.”
The demand is not the only place where executives have offered a pessimistic evaluation of the X business. According to the reports, the company’s owner, Elon Musk, told employees in January that “user growth is stagnant, the Income are not impressive and we are barely reaching a balance point. “
