Elon Musk's X Company announced Friday that it has reached a settlement with Unilever in the social media company's wide-ranging federal antitrust lawsuit against a left-wing advertising cartel and several companies accused of orchestrating an ad boycott.
The antitrust lawsuit, filed in Texas federal court in August, was filed by the left-wing Global Alliance for Responsible Media (a non-profit arm of the now-defunct powerful World Federation of Advertisers) against Unilever and several other companies. accused of illegally conspiring with advertisers to carry out the boycott. X claimed that it was suspected of not meeting brand safety standards.
A spokesperson for X said its claims against Unilever had been “resolved” and it was no longer a defendant in the lawsuit. Unilever, which owns Ben & Jerry's, Dove, Hellmann's and various other consumer products companies, plans to have its brands return to advertising on X, a spokeswoman said.
“X is pleased to reach an agreement with Unilever and continue our partnership with Unilever on our platform.” Mr. X said in a statement: “Today’s news is the first part of an ecosystem-wide solution, and we look forward to more solutions across the industry.”
The lawsuit originally named Unilever as defendants, along with GARM, its parent company WFA, CVS Health, Mars, and Orsted. The boycott cost Company X “billions of dollars” in advertising revenue, according to the lawsuit.
The spokesperson added that X “continues to pursue our antitrust claims against other defendants.”
Further details about the Unilever settlement were not immediately available.
“Unilever has reached an agreement with Company X, which has committed to meeting accountability standards to ensure the safety and performance of our brands on the platform,” a Unilever spokesperson said in a statement. “I cannot comment further on the terms of the agreement.”
GARM first came under intense public scrutiny after a damning report was released by the House Judiciary Committee in July. GARM and its members were accused of coordinating efforts to suppress free speech online and restrict advertising to numerous news outlets, including the Post.
WFA shut down the GARM initiative in August, citing its nonprofit status with limited resources and the cost of legal defense against masks. X seeks treble damages and injunctive relief from the defendants.
According to the WFA website, WFA's membership includes many of the world's largest companies, including Disney, Coca-Cola, and Adidas, which together control 90% of global marketing spending. It is said that there is. Its leadership denies any wrongdoing.
In an Aug. 13 interview with the Post, X CEO Linda Yaccarino said the lawsuit was an effort to repair what she described as a “broken” ecosystem in digital advertising. He said it was an important step.
“We have been victimized by a small group of people imposing their power and ability to monopolize what is being monetized,” Yaccarino said. “GARM was just a symptom, but [finding] The root cause of the destruction of the entire ecosystem is the purpose of this lawsuit. ”
A report by the Republican-led House Judiciary Committee seeks to curb the flow of advertising dollars to various news outlets, including the Daily Wire, Fox News, and comedian Joe Rogan's podcast “The Joe Rogan Experience.” detailed the alleged efforts of GARM and its left-wing executive Robert Rakowitz to '' and was accused of spreading false information.
In an email detailed in the report, Mr. Rakowitz said that Company X's sales were “80% below sales projections” because GARM targeted Mr. Musk over brand safety issues. He seems proud.
Rakowitz said the email was intended as a “self-mockery.”
The House committee's investigation focused on whether GARM, WFA, and their members violated Section 1 of the Sherman Antitrust Act, which provides for unlawful restraints of trade.
The commission also sent letters to more than 40 companies requesting information and preservation of documents related to their transactions with GARM.
Companies receiving letters include Adidas, American Express, Bayer, BP, Carhartt, Chanel, CVS and General Motors.
