X Legal Battle with Media: In a dramatic turn of events, social media giant X, formerly Twitter, has taken legal action against media watchdog group Media Matters. The lawsuit alleges defamation, stemming from a recent report by Media Matters that claimed ads for major brands appeared alongside extremist content on the platform. The legal battle adds a new layer of complexity to X’s challenges, particularly under the ownership of Elon Musk.
The lawsuit, filed in a U.S. District Court in Texas, accuses Media Matters of manipulating the social media platform to create a false narrative. X contends that Media Matters used specific accounts that exclusively followed major brands or users associated with fringe content. The lawsuit further claims that Media Matters engaged in continuous scrolling and refreshing until it found ads adjacent to extremist posts, presenting a distorted picture of the typical user experience on X.
Media Matters’ report, published last Thursday, led to significant repercussions for X. Major advertisers, including IBM, Comcast, and Oracle, pulled their ads from the platform in response to the allegations. The lawsuit argues that Media Matters misrepresented the typical experience on X with the intent to harm the company’s reputation and business.
X’s CEO, Linda Yaccarino, has been vocal in defending the platform’s efforts to combat hate speech and discrimination. In a note to employees, Yaccarino acknowledged that some advertisers had paused their investments following the report’s publication. Still, she emphasized the company’s commitment to addressing antisemitism and discrimination.
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Media Matters President Angelo Carusone dismissed the lawsuit as “frivolous” and suggested it was an attempt to silence X’s critics. Carusone asserted that Media Matters stands behind its reporting and looks forward to winning in court.
The legal dispute comes at a challenging time for X. Since Elon Musk’s acquisition of the platform for $44 billion in October 2022, X has witnessed a stream of advertisers pulling away, citing concerns over Musk’s controversial posts and layoffs of content moderation employees. The platform’s U.S. ad revenue has reportedly seen a significant decline year-over-year each month since Musk took over.
Texas Attorney General Ken Paxton announced on Monday that his office is launching an investigation into Media Matters. Paxton expressed concern over allegations that the watchdog group manipulated data on X, further adding a layer of complexity to the unfolding legal saga.
The battle between X and Media Matters reflects the broader challenges faced by social media platforms in navigating content moderation, combating hate speech, and addressing advertiser concerns. As the legal proceedings unfold, the outcome will likely shape the narrative around X’s content policies and its ability to regain advertiser trust in the post-Musk era.
Our Reader’s Queries
Which companies have stopped advertising on X?
Following Musk’s endorsement of an antisemitic tweet last month, a number of major advertisers have pulled out of X. This includes Warner Bros. Discovery, Comcast and NBCUniversal, and Lionsgate.
What company uses X?
Elon Musk, the mastermind behind Tesla and SpaceX, has made a big announcement regarding Twitter. The social media giant will now be known as X, according to Musk. This isn’t the first time he’s used the X brand, as he has a history of incorporating it into his ventures. With this rebrand, it will be interesting to see what new innovations and changes Musk has in store for the platform.
What is the X name lawsuit?
X Social Media has filed a lawsuit against Musk’s X, citing customer confusion and loss of revenue. The company had previously sent a cease and desist letter to the network, formerly known as Twitter, for infringing on the X name trademark.
What is the financial problem with Twitter?
Twitter’s annual revenue of $5.1bn in 2021 was largely driven by advertising, which made up almost 90% of the total. However, the platform has recently experienced a decline in revenue due to concerns over moderation standards and doubts about Musk’s leadership. This has led to an exodus of advertisers, causing a significant impact on Twitter’s revenue.