May 15 (Reuters) - Major companies that curtailed
advertising on Elon Musk's social media platform X over concerns
about its ability to control harmful content have asked a judge
to dismiss a lawsuit accusing them of boycotting the billionaire
entrepreneur's company.
The companies, including CVS, Colgate-Palmolive ( CL ), Mars and
Nestle, said in a filing in federal court in Texas on Wednesday
that Musk's X failed to show that they acted with any common
plan, rather than making individual business decisions about
when and where to spend ad dollars.
Corporate advertisers independently chose other platforms
based on their concerns about X's commitment to brand safety,
after Musk bought the site in 2022 and fired employees they said
helped to make it "welcoming to users and accommodating to
family-friendly brands," the companies said.
"X Corporation's suit is an attempt to use the courthouse to
win back the business X lost in the free market when it
disrupted its own business and alienated many of its customers,"
the companies told the court.
The advertisers said "antitrust law protects competition; it
does not protect X from competition."
CVS declined to comment. Colgate-Palmolive ( CL ), Mars and Nestle
did not immediately respond to requests for comment, and neither
did X.
X's lawsuit, filed in August, said advertisers collectively
withheld "billions of dollars in advertising revenue" from X,
previously known as Twitter. It said the companies violated
federal antitrust law by collectively agreeing to boycott
spending ad dollars at X.
The complaint said the companies acted through the World
Federation of Advertisers responsible media initiative that was
launched in 2019 and meant to help the industry address harmful
content appearing on digital media platforms.
The World Federation of Advertisers, also a defendant in the
lawsuit, declined to comment. The group, in Wednesday's court
filing, denied any conspiracy against X.
Advertisers' membership in the association is not enough to
sustain a claim of an illegal boycott, the companies said. The
majority of advertisers that participated in the federation's
initiative did not stop advertising on X, according to the
companies' filing.
Two companies, Twitch and Unilever ( UL ), reached agreements with
X in recent months and were dropped from the lawsuit.
The case is X Corp v World Federation of Advertisers et al,
U.S. District Court for the Northern District of Texas, No.
7:24-cv-00114-B.
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