Elon Musk’s social media platform, X (formerly Twitter), has initiated legal action against several companies, including Danish renewable energy and green hydrogen developer Ørsted.
The lawsuit alleges that these firms unlawfully conspired to boycott the site, causing significant revenue losses. This development raises important questions about the intersection of social media dynamics and the renewable energy sector.
Musk’s lawsuit, filed in Texas, targets the World Federation of Advertisers (WFA) and member companies like Unilever, Mars, CVS Health, and Ørsted. The core accusation is that these companies collectively decided to stop advertising on X, resulting in billions of dollars in lost revenue. This legal action follows a decline in advertising revenue at X since Musk acquired the platform for $44 billion in 2022.
Musk’s controversial statements
The lawsuit is set against a backdrop of significant changes at X post-acquisition. Musk’s restructuring efforts included mass layoffs, notably affecting content moderation teams. Concerns about harmful content and Musk’s own controversial statements have further complicated the platform’s advertising dynamics. Advertisers pulled back in November 2023 over fears of their content appearing alongside extremist posts, highlighting ongoing challenges in maintaining brand safety.
Ørsted, as a prominent player in renewable energy and green hydrogen, finds itself entangled in this broader dispute. The lawsuit brings into focus the potential risks and reputational challenges that renewable energy companies may face when their business decisions intersect with high-profile social media controversies. It underscores the importance of strategic communication and risk management for companies operating at the nexus of technology and sustainability.
The lawsuit claims that the advertisers’ actions, coordinated through the Global Alliance for Responsible Media (GARM), violated US antitrust laws. GARM, established to address harmful content on digital platforms, aims to create safer advertising environments. However, proving a coordinated boycott will be a significant legal challenge for X, as noted by antitrust expert Professor Christine Bartholomew from Buffalo University. Even if successful, the lawsuit cannot compel companies to resume advertising on the platform.
