In a surprising move, Elon Musk's social media platform X has filed a lawsuit against a group of advertisers, accusing them of participating in a "massive advertiser boycott" that resulted in significant revenue loss and violations of antitrust laws. The lawsuit was initiated on Tuesday in a federal court in Texas, targeting the World Federation of Advertisers and member companies including Unilever, Mars, CVS Health, and Orsted.

X, previously known as Twitter, alleged that the advertisers' brand safety initiative, called the Global Alliance for Responsible Media, acted in coordination to pause advertising activities following Musk's acquisition of the platform for a whopping $44 billion in late 2022. Since taking control, Musk had made substantial changes to the staff and policies of X.

Taking to his own platform, Musk posted about the lawsuit on X, declaring "now it is war" after two years of being amicable and receiving nothing but hollow promises. X CEO Linda Yaccarino amplified the gravity of the situation in a video announcement, citing evidence uncovered by the U.S. House Judiciary Committee, which revealed that a group of companies had allegedly conspired to orchestrate an unlawful boycott against X.

The lawsuit's allegations primarily focus on the early days of Musk's Twitter takeover and do not directly address the subsequent dispute with advertisers that emerged about a year later. In November 2023, numerous advertisers began withdrawing from X due to concerns surrounding their advertisements appearing alongside pro-Nazi content and hate speech on the site. Musk further fueled tensions with his own posts, endorsing an antisemitic conspiracy theory. In response, he labeled the departing advertisers as engaging in "blackmail" and, using explicit language, instructed them to leave.

The Belgium-based World Federation of Advertisers, as well as representatives for CVS, Orsted, Mars, and Unilever, have yet to respond to requests for comment regarding the lawsuit. Notably, a senior executive from Unilever had previously testified at a recent congressional hearing, defending the company's practice of selecting advertising platforms that align with its brand values. The executive stated that Unilever maintains full control over its advertising expenditure, asserting that no platform has an inherent right to their advertising dollars.

The lawsuit filed by X against the World Federation of Advertisers and its member companies reflects the magnitude of the battle ensuing in the online advertising industry. With antitrust allegations and revenue losses at stake, the outcome of this legal dispute will undoubtedly have far-reaching implications for the future of digital advertising.