In a significant legal development, Elon Musk’s social media platform X has removed Unilever from its advertising boycott lawsuit against several consumer goods giants.
The legal proceedings initiated by X, previously known as Twitter, alleged a major conspiracy by consumer goods companies to boycott the platform. The lawsuit, filed in a federal court in Texas, had accused these firms of causing financial harm to X by withdrawing their advertising due to concerns over the association with harmful content, like racist or misleading posts.
However, in a recent filing, X has decided to drop its claims against Unilever, a prominent food and drink manufacturer with brands such as Ben & Jerry’s and Marmite. Unilever confirmed reaching an agreement with X, underscoring the platform’s commitment to meeting Unilever’s standards for brand safety and performance.
X, while ceasing legal action against Unilever, intends to maintain its strategic partnership with the company. Despite this resolution, the antitrust lawsuit continues against other defendants, including Mars, known for products like Dolmio and Snickers.
Elon Musk has been vocal about the issue on social media, asserting that the boycott represented a deliberate attempt to damage X financially. “We tried peace for 2 years, now it is war,” Musk tweeted, highlighting his aggressive stance against the accused parties.
This case forms part of a broader conflict involving social media platforms and advertisers who are increasingly cautious about the content their advertisements may accompany. The outcome with Unilever may influence ongoing negotiations and strategies among other advertisers as the sector grapples with these challenges.
The resolution between X and Unilever marks a notable turn in the ongoing legal battle, although it does not conclude the broader issues at play in the relationship between advertisers and social platforms.
