Elon Musk’s recent efforts to improve relations with the advertising industry have quickly diminished, as X (Twitter) has filed an antitrust lawsuit against the Global Alliance for Responsible Media (GARM), The World Federation of Advertisers (WFA), and several other major corporations.
Davis+Gilbert Advertising + Marketing partner Louis DiLorenzo was featured in this LBB article, “Elon Musk is Suing the WFA – So What?” This article discusses X’s antitrust lawsuit against industry groups and major companies over alleged collusion and an illegal boycott.
Louis explains that while trade associations like the WFA work together on industry standards, they must be considered anti-competitive.
Boycotts motivated by moral or political reasons have sometimes been upheld in court, but the core of this case will be whether X (Twitter) can prove that an illegal boycott actually took place. Louis comments “Every industry has their own trade associations, and they do have to be careful. Typically, for a trade association, there will be rules and standards about what can be discussed, what can be on the agenda, and making sure that nothing is being done for an unlawful purpose.”
Read more to learn about the potential implications and ongoing developments in this case.