X Fights Back Against Alleged “Systematic Illegal Boycott”

X, the company formerly known as Twitter, is doubling down on its antitrust lawsuit, expanding its legal battle to include major players like Lego, Nestlé, Pinterest, and others. This move comes as CEO Linda Yaccarino accuses these companies of participating in a “systematic illegal boycott” aimed at crippling X’s advertising revenue.

The Origins of the Legal Firestorm

X first filed the lawsuit in August 2024 against the World Federation of Advertisers (WFA) and its brand safety initiative, the Global Alliance of Responsible Media (GARM). The WFA quickly disbanded GARM, citing “recent allegations that unfortunately misconstrue its purpose and activities.” However, the WFA’s CEO vowed to fight back, claiming full adherence to competition rules.

“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.”

X’s Legal Complaint

The Expanding List of Defendants

Initially, the lawsuit targeted Twitch and other advertisers. But now, as reported by Business Insider, X has amended its complaint to include:

• Nestlé
• Abbott Laboratories
• Colgate
• Lego
• Pinterest
• Tyson Foods
• Shell

The Allegations: Coercion and Collusion

X’s complaint alleges that the WFA orchestrated an advertiser boycott through GARM, aiming to force X into compliance with GARM’s Brand Safety Standards. The lawsuit claims this boycott caused significant harm:

• At least 18 GARM-affiliated advertisers stopped purchasing ads on X between November and December 2022.
• Other advertisers “substantially” reduced their spending.
• Ad prices on X remain “well below those charged by X’s closest competitors.”

The Ripple Effect on X’s Business

The lawsuit paints a grim picture of X’s current state. Elon Musk reportedly told employees in January 2025 that “user growth is stagnant, revenue is unimpressive, and we’re barely breaking even.” The legal battle adds another layer of complexity to X’s struggle to regain its footing in the competitive social media landscape.

Why This Matters

This lawsuit isn’t just about X; it’s a high-stakes battle that could redefine the rules of engagement in the digital advertising world. If X succeeds, it could set a precedent that protects smaller platforms from coordinated boycotts. If it fails, the power dynamics in the advertising industry could shift even further in favor of established giants.

“By refraining from purchasing advertising from X, boycotting advertisers are forgoing a valuable opportunity to purchase low-priced advertising inventory on a platform with brand safety that meets or exceeds industry standards.”

X’s Legal Complaint

What’s Next?

As the legal drama unfolds, all eyes will be on how this case impacts X’s future and the broader advertising ecosystem. Will X emerge victorious, or will this legal battle further erode its standing? Only time will tell, but one thing is certain: the stakes couldn’t be higher.