You can sue people for choosing not to do business with you?
Musk is such a fucking baby. He has no basis for this. He made major changes to the site, including a complete rebrand, and advertisers left. That's the fucking free market, and he's gonna sue?
You can sue people for choosing not to do business with you?
You can sue people for whatever you want. But that's not what they're suing them for, if you actually read the article. They're suing for collusion.
X CEO Linda Yaccarino said in a video announcement that the lawsuit stemmed in part from evidence uncovered by the U.S. House Judiciary Committee, which she said showed a "group of companies organized a systematic illegal boycott" against X.
The Republican-led committee had a hearing last month looking at whether current laws are "sufficient to deter anticompetitive collusion in online advertising."
It would make an interesting precedent. Bud Light can then sue over the boycott with the whole LGBTQ thing because some didn't buy their beer. Celebrities being cancelled can try to sue magazines for not running their articles or ads. It's going to be such an unholy mess.
Pure speculation on the only real way it could have merit:
Sometimes there actually are contracts for minimum spending. This happens with actual physical products in exchange for a better bulk price, and would usually take extraordinary events to breach the contract on the manufacturer's side to break as the purchaser, because it may involve stuff like building up manufacturing capacity. In that context, it's a perfectly legitimate business practice.
The economics of websites are different, but (without direct knowledge of anyone's practices) it's within the realm of plausibility that similar contracts exist on big advertising platforms. It's valuable for larger advertisers to keep price down, and it's valuable for the platforms to have a steady base level of advertising.
If those contracts do exist, then the case might have the potential to be interesting. How badly does a platform have to materially degrade the value of their advertising before advertisers are able to back out of pre-existing deals? (The other option is collusion, but good luck showing cause for that.)
To quote Legal Eagle on Nebula: it depends. Suppose that the customers had a deal with Twitter granting them special pricing, but on the condition that they spend a certain amount during a given period. Then the customers could be breaching the terms of the contract by dropping out halfway through. I'm not saying that's what's happening here, and IANAL of course, but it seems plausible to me.
So what you are thinking is all the media outlets are so shit they didn't read the case and none of them found it saying, breach of contract. Could be true with how a lot of reporting goes these days, but why would the lawyers for X have not just said, this suit is about breach of contract, not conspiracy to boycott a poor billionaire's company he is embezzling money to through Tesla?
Should every company, regardless of whether they’ve advertised on Twitter before, be federally mandated to spend a certain percentage of their advertising budget on Musk’s little shitshow?
Dunno how much attention it's gonna draw away from it when it inevitably comes out that his PAC funded the committee that turned over the "evidence" that's being used to prop up his court case.
Just like you exercised your free speech to give Trump's PAC a gratuity of $45 million, advertisers exercised their free speech by not spending it on twitter.
Aren't you a free speech absolutist? Why are you trying to force advertisers to exercise their free speech on your platform?
My head-cannon from the lawyers going something like this.
"Thank you Mr. Musk for the lawsuit, we had a lot of fun reading it. Especially the parts you drew (I liked the blue dinosauar). Before we begin, we would like to let you know the legal fees for this case are coming directly from the portion of the advertising budget we allocated to the website formerly known as Twitter"
X’s lawsuit alleged that the advertisers’ “boycott” violated Section 1 the U.S.’s Sherman Act antitrust law, which broadly prohibits agreements among distinct actors that unreasonably restrain trade, “by withholding purchases of digital advertising from Twitter.”
“The conduct of Defendants and their co-conspirators alleged herein is per se illegal, or, in the alternative, illegal under the Rule of Reason or ‘quick look’ analytical framework,” the X lawsuit said. “There are no procompetitive effects of the group boycott, which was not reasonably related to, or reasonably necessary for, any procompetitive objectives of the GARM Brand Safety Standards.”
The “unlawful conduct” alleged by X is the subject of “an active investigation” by the House of Representatives’ Committee on the Judiciary, the lawsuit said. The committee’s interim report issued on July 10 concluded that, “The extent to which GARM has organized its trade association and coordinates actions that rob consumers of choices is likely illegal under the antitrust laws and threatens fundamental American freedoms. The information uncovered to date of WFA and GARM’s collusive conduct to demonetize disfavored content is alarming.”
But what would it even change? The businesses would no longer be able to make an explicit agreement, probably have to pay a fine, but can they be forced to advertise or will they just proceed to coincidentally all decide not to advertise without explicitly colluding?
I would think. And if that proof exists, it will come up at the appropriate time during legal proceedings. I'm skeptical there is any.
I guess they could call the entire existence of GARM to be collusion; companies banding together to "punish" companies who don't follow their guidelines. But X is (was?) a voluntary member of GARM, so it seems that would be a difficult argument for them to make without implicating themselves too.
But it's strange because this refusal to advertise on twitter doesn't really harm competition in anyway. Concerted refusal to deal is supposed to be like when 3 big bad companies want to hurt a smaller competitive company so they get together and boycott any suppliers that deal with this competitor or force them to get a worse deal.
The companies GARM (Global Alliance for Responsible Media) represents are big enough (90% of advertising $) but they aren't really competitors to twitter. If say facebook and tiktok got together and told GARM they wouldn't run any of their ads unless they stopped working with twitter that would be much more in the spirit of the law.
But Twitter might still have a tiny bit of a case if they can prove they met GARM's standards but were still excluded anyway. I doubt that's enough for any major payouts though unless the judge is crazy. And honestly I think it's still dumb because even if GARM settles it just tells advertisers "Okay you can advertise on twitter if you want they meet our standards"...but are advertisers really going to want to advertise on the site that just sued them?
Also I don't even think GARM prohibits members from advertising with companies it doesn't recommend and just offers suggestions, which makes this case even more insane if that's true. In that situation it's like the health inspector gives a restaurant a "D" and the restaurant sues customers for not eating there anymore.
Don't forget the customers of the restaurant also saw the head chef personally farting on all the plates before the food was placed on them. It's not just the health inspector's report.
But, hey, if he wants to argue that money isn't expression and corporations don't have freedom of speech I won't try to stop him accidentally overturning Citizens United.
Even if he wins, that still wouldn't even work, the fucking lemon, you can't force people to buy your products.