Elon Musk Threatens Advertisers with X's Legal Force to Resume Paying

X, formerly Twitter, launched a legal blitz earlier this year, demanding that advertisers resume spending or face lawsuits. The aggressive campaign has already prompted at least six major brands, such as Verizon, Ralph Lauren, Unilever, Amazon, Publicis, and IPG, to return ad dollars.

In August 2024, X sued the Global Alliance for Responsible Media (GARM), the ad-buying trade group, and several brands. The platform claimed they had coordinated an illegal boycott, cutting off billions in advertising. Shortly after, GARM disbanded, citing financial strain due to the lawsuit.

Verizon hadn’t advertised since 2022 but agreed to spend a minimum of $10 million this year after X threatened legal action. Ralph Lauren rejoined under similar pressure. Unilever, initially sued, reached a settlement and was dropped from the suit in October. Amazon, after a pause, boosted its X ad presence under CEO Andy Jassy.

Other recent Twitter/X news –

• Elon Musk’s X Rolls Out XChat but Security Experts Raise Red Flags – Know More
• Grok 3’s DeepSearch scans X (formerly Twitter)’s feed to give you an AI answer

X has also targeted ad agencies directly. Interpublic signed a deal after X hinted its merger with Omnicom could face Trump era scrutiny. Publicis upped U.S. spending to roughly $150M, while negotiations with WPP over $200M remain ongoing. X’s lawyers even subpoenaed internal communications from Omnicom, WPP, and Publicis over Media Matters litigation.

X’s ad revenue plunged from $4.6B in 2022 to $2.6B in 2024. It has recovered slightly with the pressure campaign and by offering ad-safety tools and sports partnerships with the NFL and NBA. Emarketer projects growth in 2025, but figures remain well below pre-Musk levels.

Meanwhile, the Federal Trade Commission is investigating possible antitrust breaches. It has issued civil investigative demands to Media Matters and sent info requests to major ad agencies.

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