via NYPOST:
Billionaire Elon Musk threatened legal action Thursday against an alliance that includes some of the world’s biggest companies over an “advertising boycott racket” that has targeted contributed to a revenue crunch at his social media platform X.
Musk, who bought the company formerly known as Twitter for $44 billion in 2022, made the claim in response to a video of Daily Wire founder Ben Shapiro’s Congressional testimony this week on alleged advertiser collusion against right-leaning platforms.
“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 wrote on X. “Hopefully, some states will consider criminal prosecution.”
Shapiro testified Wednesday before a House Judiciary panel in a hearing entitled “Collusion in the Global Alliance for Responsible Media (GARM).”
GARM is an initiative established by the World Federation of Advertisers — which includes Disney, Coca-Cola, Toyota and Hershey among its dozens of members — to “address the challenge of harmful content on digital media platforms and its monetization via advertising,” according to its website.
WFA’s members account for roughly 90% of all global advertising spending – totaling nearly $1 trillion per year.
Elon Musk threatened legal action against an alliance of major companies over an “advertising boycott racket” that has impacted his social media platform, X. Here are the key points:
- Background: Musk, who acquired X (formerly known as Twitter) for $44 billion in 2022, responded to a video of Daily Wire founder Ben Shapiro’s Congressional testimony. The testimony focused on alleged advertiser collusion against right-leaning platforms.
- The Allegations: Musk claimed that evidence uncovered by Congress compelled X to file a lawsuit against the perpetrators and collaborators involved in the advertising boycott. He also urged states to consider criminal prosecution.
- The Alliance: The alliance in question is the Global Alliance for Responsible Media (GARM), established by the World Federation of Advertisers. GARM aims to address harmful content on digital media platforms and its monetization via advertising. Members of GARM include major brands like Disney, Coca-Cola, Toyota, and Hershey.
- Revenue Impact: An interim staff report highlighted questionable conduct by GARM chief Robert Rakowitz. Rakowitz denied organizing a boycott but appeared to acknowledge X’s revenue decline since GARM challenged Musk on brand safety issues.
- Bias Against Conservative Media: The report also revealed bias against conservative media outlets. Executives discussed strategies to block certain news outlets like Fox News, The Daily Wire, and Breitbart News.