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X and Unilever Settle Antitrust Dispute, Continuing Partnership

By  |  October 13, 2024
X and Unilever Settle Antitrust Dispute, Continuing Partnership

Elon Musk’s social media platform X (formerly Twitter) has reached a settlement with Unilever, effectively dropping the consumer goods giant from a lawsuit that accused it and other companies of colluding to boycott the platform. According to Reuters, X announced the dismissal of its claims against Unilever in a federal court filing on Friday.

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    Unilever, based in London and known for its wide range of products including Dove soaps, Hellmann’s condiments, and Pepsodent toothpaste, confirmed the settlement, stating that the company had come to an agreement with X that ensures adherence to responsibility standards necessary for safeguarding its brands on the platform. In its statement, Unilever emphasized the importance of maintaining brand safety and performance on social media.

    “We are pleased to continue our partnership with them on the platform,” X said in a statement, highlighting the collaborative spirit of the agreement. However, the social media company did not disclose specific terms of the settlement and clarified that it would continue pursuing its antitrust claims against other defendants involved in the lawsuit.

    Related: X May Be Excluded from EU’s Strict Tech Rules, Sources Suggest

    The lawsuit, originally filed in August, accused the World Federation of Advertisers, alongside its members including Unilever, Mars, CVS Health, and the Danish renewable energy company Orsted, of conspiring to withhold significant advertising revenue from X. The allegations suggested that these companies collectively aimed to restrict X’s access to billions of dollars in advertising income.

    As of Friday, the other defendants, including the World Federation of Advertisers, have yet to respond to the court or to requests for comment regarding the lawsuit.

    Since Musk’s acquisition of X in October 2022, the platform has faced significant challenges in maintaining advertising revenue. Many advertisers expressed concerns about brand safety on X, fearing that their advertisements might appear alongside harmful or controversial content—issues that were more rigorously managed under previous leadership.

    The resolution with Unilever marks a pivotal moment for X as it seeks to stabilize its advertising business amidst ongoing scrutiny and challenges in the competitive social media landscape.

    Source: Reuters