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Elon Musk's X sues advertisers over alleged 'massive advertiser boycott' after Twitter takeover

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Elon Musk's X sues advertisers over alleged 'massive advertiser boycott' after Twitter takeover
News

News

Elon Musk's X sues advertisers over alleged 'massive advertiser boycott' after Twitter takeover

2024-08-07 08:33 Last Updated At:08:41

WICHITA FALLS, Texas (AP) — Elon Musk's social media platform X has sued a group of advertisers, alleging that a “massive advertiser boycott” deprived the company of billions of dollars in revenue and violated antitrust laws.

The company formerly known as Twitter filed the lawsuit Tuesday in a federal court in Texas against the World Federation of Advertisers and member companies Unilever, Mars, CVS Health and Orsted.

It accused the advertising group's brand safety initiative, called the Global Alliance for Responsible Media, of helping to coordinate a pause in advertising after Musk bought Twitter for $44 billion in late 2022 and overhauled its staff and policies.

Musk posted about the lawsuit on X on Tuesday, saying “now it is war” after two years of being nice and “getting nothing but empty words.”

X CEO Linda Yaccarino said in a video announcement that the lawsuit stemmed in part from evidence uncovered by the U.S. House Judiciary Committee which she said showed a “group of companies organized a systematic illegal boycott” against X.

The Republican-led committee had a hearing last month looking at whether current laws are “sufficient to deter anticompetitive collusion in online advertising.”

The lawsuit’s allegations center on the early days of Musk’s Twitter takeover and not a more recent dispute with advertisers that came a year later.

In November 2023, about a year after Musk bought the company, a number of advertisers began fleeing X over concerns about their ads showing up next to pro-Nazi content and hate speech on the site in general, with Musk inflaming tensions with his own posts endorsing an antisemitic conspiracy theory.

Musk later said those fleeing advertisers were engaging in “blackmail” and, using a profanity, essentially told them to go away.

The Belgium-based World Federation of Advertisers and representatives for CVS, Orsted, Mars and Unilever didn’t immediately respond to requests for comment Tuesday.

A top Unilever executive testified at last month's congressional hearing, defending the British consumer goods company's practice of choosing to put ads on platforms that won't harm its brand.

“Unilever, and Unilever alone, controls our advertising spending,” said prepared written remarks by Herrish Patel, president of Unilever USA. “No platform has a right to our advertising dollar.”

FILE - Elon Musk arrives before a joint meeting of Congress at the Capitol in Washington, July 24, 2024. (AP Photo/Julia Nikhinson, File)

FILE - Elon Musk arrives before a joint meeting of Congress at the Capitol in Washington, July 24, 2024. (AP Photo/Julia Nikhinson, File)

MADISON, Wis. (AP) — Donald Trump's fourth scheduled stop in eight days in Wisconsin is a sign of his increased attention as Republicans fret about the former president's ability to match the Democrats' enthusiasm and turnout machine.

“In the political chatter class, they’re worried," said Brandon Scholz, a retired Republican strategist and longtime political observer in Wisconsin who voted for Trump in 2020 but said he is not voting for Trump or Democratic nominee Kamala Harris this year. “I think Republicans are right to be concerned.”

Trump's latest rally was planned for 2 p.m. Central time Sunday in Juneau in Dodge County, which he won in 2020 with 65% of the vote. Jack Yuds, chairman of the county Republican Party, said support for Trump is stronger in his part of the state than it was in 2016 or 2020. “I can’t keep signs in,” Yuds said. “They want everything he’s got. If it says Trump on it, you can sell it.”

Wisconsin is perennially tight in presidential elections but has gone for the Republicans just once in the past 40 years, when Trump won the state in 2016. A win in November could make it impossible for Harris to take the White House.

Trump won in 2016 over Democrat Hillary Clinton by fewer than 23,000 votes and lost to Democrat Joe Biden in 2020 by just under 21,000 votes.

On Tuesday, Trump made his first-ever visit to Dane County, home to the liberal capital city of Madison, in an effort to turn out the Republican vote even in the state's Democratic strongholds. Dane is Wisconsin’s second most-populous and fastest-growing county; Biden received more than 75% of the vote four years ago.

“To win statewide you’ve got to have a 72-county strategy,” former Gov. Scott Walker, a Republican, said at that event.

Trump’s campaign and outside groups supporting his candidacy have outspent Harris and her allies on advertising in Wisconsin, $35 million to $31 million, since she became a candidate on July 23, according to the media-tracking firm AdImpact.

Harris and outside groups supporting her candidacy had more advertising time reserved in Wisconsin from Oct. 1 through Nov. 5, more than $25 million compared with $20 million for Trump and his allies.

The Harris campaign has 50 offices across 43 counties with more than 250 staff in Wisconsin, said her spokesperson Timothy White. The Trump campaign said it has 40 offices in the state and dozens of staff.

Harris rallied supporters in Madison in September at an even that drew more than 10,000 people. On Thursday, she made an appeal to moderate and disgruntled conservatives by holding an event in Ripon, the birthplace of the Republican Party, along with former U.S. Rep. Liz Cheney of Wyoming, one of Trump’s most prominent Republican antagonists.

Harris and Trump are focusing on Wisconsin, Michigan and Pennsylvania, the “blue wall” states that went for Trump in 2016 and flipped to Biden in the next election.

While Trump’s campaign is bullish on its chances in Pennsylvania as well as Sunbelt states, Wisconsin is seen as more of a challenge.

“Wisconsin, tough state,” said Trump campaign senior adviser Chris LaCivita, who worked on Republican Sen. Ron Johnson’s winning reelection campaign in 2022.

“I mean, look, that’s going to be a very tight — very, very tight, all the way to the end. But where we are organizationally now, comparative to where we were organizationally four years ago, I mean, it’s completely different,” LaCivita said.

He also cited Michigan as more of a challenge. “But again, these are states that Biden won and carried and so they’re going to be brawls all the way until the end and we’re not ceding any of that ground.”

The candidates are about even in Wisconsin, based on a series of polls that have shown little movement since Biden dropped out in late July. Those same polls also show high enthusiasm among both parties.

Mark Graul, who ran then-President George W. Bush’s 2004 campaign in Wisconsin, said the number of campaign visits speaks to Wisconsin’s decisive election role.

The key for both sides, he said, is persuading infrequent voters to turn out.

“Much more important, in my opinion, than rallies,” Graul said.

Associated Press writers Thomas Beaumont in Des Moines, Iowa, and Jill Colvin in Butler, Pennsylvania, contributed to this report.

Republican presidential nominee former President Donald Trump arrives at a campaign event at Dane Manufacturing, Tuesday, Oct. 1, 2024, in Waunakee, Wis. (AP Photo/Charlie Neibergall)

Republican presidential nominee former President Donald Trump arrives at a campaign event at Dane Manufacturing, Tuesday, Oct. 1, 2024, in Waunakee, Wis. (AP Photo/Charlie Neibergall)

Republican presidential nominee former President Donald Trump speaks at a campaign event at Dane Manufacturing, Tuesday, Oct. 1, 2024, in Waunakee, Wis. (AP Photo/Charlie Neibergall)

Republican presidential nominee former President Donald Trump speaks at a campaign event at Dane Manufacturing, Tuesday, Oct. 1, 2024, in Waunakee, Wis. (AP Photo/Charlie Neibergall)

Republican presidential nominee former President Donald Trump arrives for a campaign event Saturday, Sept. 28, 2024, in Prairie du Chien, Wis. (AP Photo/Morry Gash)

Republican presidential nominee former President Donald Trump arrives for a campaign event Saturday, Sept. 28, 2024, in Prairie du Chien, Wis. (AP Photo/Morry Gash)

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