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HomeBusinessElon Musk sues watchdog after big firms drop ads.

Elon Musk sues watchdog after big firms drop ads.

  • Watchdog Impact on X’s Platform
  • Advertiser Concerns and Withdrawals
  • Lawsuit Against Media Matters

X claimed in a lawsuit filed in the US District Court in Texas that Media Matters “intentionally and maliciously” displayed advertisements alongside bigoted content “as if they were the experience of average X users on the platform.”

A watchdog organisation, Media Matters, has been sued by Elon Musk’s X (formerly Twitter), which alleges that the organisation fabricated a report to display advertiser posts alongside neo-Nazi and white nationalist material.

Corporate Response to Hate Speech Concerns

Prominent American corporations such as Disney, Warner Bros., and Comcast withdrew advertisements from X due to apprehensions regarding the visibility of their advertisements alongside hate speech on the platform. Elon Musk, on the other hand, has exacerbated the situation with his own posts endorsing an antisemitic conspiracy theory.

X claimed in a lawsuit filed in the US District Court in Texas that Media Matters “intentionally and maliciously” displayed advertisements alongside bigoted content “as if they were the experience of average X users on the platform.”

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It asserts that the watchdog manipulated the platform’s algorithms to juxtapose advertisements’ paid posts with racist and pro-Nazi content. X describes the juxtapositions as “manufactured, inorganic, and exceedingly rare.”

The report claims that Media Matters accomplished this by utilising X accounts that simply followed users known for producing “extreme fringe content” and accounts owned by X’s major advertisers. This, according to the report, resulted in a feed designed to generate side-by-side comparisons, which Media Matters then attempted to screenshot in an attempt to alienate X’s advertisers.

“Data triumphs over accusations or manipulation.”
Do not allow manipulation. On Monday, CEO Linda Yaccarino wrote, “Stand with X.”

Media Matters’ Defence and Public Outcry

Angelo Carusone, president of Media Matters, defended the organization’s reporting, stating, “This is a meritless lawsuit designed to intimidate X’s detractors into submission.”

Elon Musk’s agreement with a post that falsely claimed Jews were inciting animosity against white people, stating that the user who referenced the “Great Replacement” conspiracy theory was speaking “the actual truth,” also provoked widespread outrage.

The White House issued a severe reprimand in response to his statements, accusing him of “abhorrent promotion of antisemitic and racist hatred” that “contravenes our fundamental American values.”

Investors avoid X

Since Musk purchased Twitter for $44 billion (£35 billion) in October 2022, advertisers have departed the social media platform due to his controversial posts and layoffs of employees who moderated content.

Since Musk’s takeover, the platform’s US advertising revenue has decreased by at least 57% per month compared to the same month last year, according to Reuters.

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