Elon Musk’s X files antitrust lawsuit against secret advertising cartel for allegedly coordinating ‘illegal boycott’

Elon Musk’s X filed an antitrust lawsuit Tuesday against a left-leaning advertising cartel and several member companies, alleging the group targeted the social media site with an illegal ad boycott.

In an open letter to advertisers at X, CEO Linda Yaccarino said the lawsuit targets the Global Alliance for Responsible Media — a dubious group that is under intense scrutiny after a damning report from the House Judiciary Committee that accused GARM and members of of coordinating an effort to suppress free speech on the Internet and limit advertising in a host of media outlets, including The Post.

“This is not a decision we took lightly, but it is a direct consequence of their actions,” Yaccarino wrote. “The illegal behavior of these organizations and their leaders cost them X billion dollars.”

The lawsuit, filed in Texas, also names parent firm GARM, the World Federation of Advertisers (WFA) and members that include CVS Health, Mars, Orsted and Unilever.

“Put simply, people are hurt when the marketplace of ideas is undermined and some views are not funded over others as part of an illegal boycott,” Yaccarino said.

“This behavior is a stain on a great industry and cannot be allowed to continue.

According to a copy of the complaint seen by The Post, the suit seeks treble damages and injunctive relief.

GARM, led by radical boss Robert Rakowitz, is an initiative of the WFA, which represents dozens of the world’s largest advertising companies and organizations, including Disney and Coca-Cola.

Its members control 90% of global marketing spending, amounting to nearly $1 trillion annually, according to the House Judiciary Committee report.

“This case is about more than damages — we need to fix a broken ecosystem that allows this illegal activity to happen,” Yaccarino added.

The Post reached out to Rakowitz and the WFA for comment.

CVS Health, Orsted, Mars and Unilever did not immediately respond to calls for comment.

Much of the House committee’s scrutiny fell on Rakowitz.

Lawmakers obtained internal emails, including one in which Rakowitz appeared to boast that X was “80% below revenue projections” after GARM targeted Musk over brand safety issues.

Rakowitz later claimed the email was intended as a “self-indulgent joke.”

The House committee’s investigation focused on whether GARM and its members violated Section 1 of the Sherman Antitrust Act, which governs unlawful restraint of trade.

Sources previously told The Post that the panel was considering whether to make a formal referral to the Justice Department.

GARM has allegedly siphoned advertising dollars away from a number of other right-leaning media outlets, including Fox News and comedian Joe Rogan’s podcast “The Joe Rogan Experience.”

GARM has hit back at the allegations, with a spokesman previously claiming the committee’s allegations of anti-competitive behavior are “baseless”.

As The Post reported last week, the House Judiciary Committee sent letters to more than 40 major companies seeking more information about whether they had colluded to discredit news outlets and platforms that allowed political views they disagreed with. they agreed.

Adidas, American Express, Bayer, BP, Carhartt, Chanel, CVS and General Motors were among the companies that received letters demanding they preserve documents and provide information about their dealings with GARM.

“The committee has learned that covert activity is occurring within the Global Alliance for Responsible Media, of which your company is a member,” the letter began.

“In particular, the Committee has uncovered evidence of coordinated action by GARM and its member companies, including boycotts of disadvantaged social media, podcast and media platforms,” ​​the letter added.

At least two Republican attorneys general are known to be reviewing evidence from the House report and weighing possible legal action against members of the cabal.