Linda Yaccarino Fires Back at X Advertisers with Lawsuit
Musk’s X (FKA Twitter) CEO, Linda Yaccarino, has clapped back at the platform’s biggest advertising companies with a major lawsuit for boycotting the social media X platform.
Global Alliance for Responsible Media (GARM), the World Federation of Advertisers (WFA), and others, including CVS Health, Mars, Orsted, and Unilever are among the companies under legal fire by the X executive.
A Systematic Boycott
Linda Yaccarino said in an X post that the micro-blogging platform has filed a lawsuit in Texas, targeting organizations and companies for coordinating systematic boycott against X. Yaccarino also mentioned that the goal behind such an illegal activity is to clearly affect X’s business operations and market position in a negative manner.
In her post, Yaccarino said, “
In her post, Yaccarino said, “Since arriving at X, I made it my mission to continue to build a platform where people, brands and advertisers can thrive in our unique, dynamic and safe environment”.
“The consequence – perhaps the intent – of this boycott was to seek to deprive X’s users, be they sports fans, gamers, journalists, activists, parents or political and corporate leaders, of the Global Town Square,” Yaccarino’s post stated.
According to the lawsuit, the actions of these companies and organizations were a collective effort to weaken the operation of X by actively blocking potential advertising avenues, therefore diminishing the platform’s revenue streams.
For her part Yaccarino added that the boycotting could cause significant, and potentially irreversible damage to X, stating, “The illegal behavior of these organizations and their executives cost X billions of dollars.”
Yaccarino’s Great Influence
Linda Yaccarino, known for her futuristic vision and leadership, views this lawsuit as a challenge to strengthen X’s position in the marketplace. To illustrate this, she highlighted that the platform’s main goal is to be user-friendly, noting, “In August 2022, people spent 7.2 billion active minutes on the platform. Today, that number is more than 9 billion, a 25% increase.”
Meanwhile, the advertising industry is watching closely the lawsuit, with some experts suggesting that if X won the battle against these companies, it could lead to consequential changes in marketing strategies and compliance practices worldwide, resulting in more transparency and fairness in the market.
Following the announcement of the lawsuit, the video sharing app, Rumble decided to join X, alleging a conspiracy to withhold ad dollars from its platform.
“Brand safety standards set up by advertisers and their ad agencies ought to succeed or fail within the marketplace on their own merits, without the coercive workout of market power,” Rumble said.
Final Thoughts
This lawsuit, though it is very important, it’s also a double edge sword for one the most widely used social media platforms, X. If the lawsuit against the advertising companies results in a victory, it could lead to further alterations in market strategies, birthing a much more powerful position for Musk’s X in the market. If X loses, however, the advertising companies will get to maintain their market dominance, increasing the monopolization practices.
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