Elon Musk’s X company has filed a lawsuit against several high-profile advertisers, accusing them of antitrust violations. The lawsuit, which claims these advertisers pressured a “boycott” that severely harmed X’s revenue stream, marks a key moment in Musk’s ongoing dispute with the advertising industry. Here’s everything to know.

The suit revolves around allegations that a powerful advertising coalition, the Global Alliance for Responsible Media (GARM), engaged in a collective effort to withhold billions of dollars worth of advertising from X Corp. The move was reportedly motivated by concerns over the platform’s adherence to brand safety standards following Musk’s acquisition of X in late 2022. GARM is a voluntary initiative under the World Federation of Advertisers dedicated to ensuring that brands do not place their ads next to illegal or harmful content.

The lawsuit specifically names four of GARM’s more than 100 member companies as defendants: CVS, Unilever, Mars and Danish energy giant Ørsted. The legal action, filed in a Texas federal court, highlights X Corp’s struggle to restore its core advertising business, which has been in decline since Musk took office. Many advertisers have cut back on spending because they fear their ads may be associated with misinformation or hate speech on the platform.

X Corp.’s leadership has given mixed messages about the state of its advertising business, alternating between claims of improvement and acknowledgments of ongoing difficulties. In a video message on X, CEO Linda Yaccarino painted a bleak picture, warning that the GARM-led boycott has threatened the platform’s long-term viability by significantly cutting into its advertising revenue.

GARM has not yet commented on the lawsuit. According to X Corp’s legal complaint, GARM members collectively agree to uphold and enforce brand safety standards by withholding advertising from platforms that fail to comply. Following Musk’s acquisition, GARM publicly pressured X Corp to meet these standards, prompting many of its member companies to abruptly stop or reduce their advertising on X.

GARM’s official stance, as stated on its website, is that it “does not interfere with a member’s decision whether to invest advertising resources on a particular website or channel.” Nevertheless, X Corp’s lawsuit aims to prevent GARM from making such recommendations about advertising on X, while also seeking unspecified monetary compensation.

In a related move, X Corp has also filed suit against the watchdog group Media Matters. This legal action comes after Media Matters’ analysis highlighted anti-Semitic and pro-Nazi content on X, which contributed to a significant backlash from advertisers. X Corp’s lawsuit claims that Media Matters misrepresented the likelihood of ads appearing alongside such extremist content. Media Matters chairman Angelo Carusone has dismissed the lawsuit as “frivolous”, and a hearing on the case has been scheduled for next year.