X boycotted? | Advertisers jointly boycott Musk and sue

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Moving headquarters to pave the way for payment business Support EJ Tech

go through Hong Kong Economic Times August 8, 2024

originalPublished in Hong Kong Economic Times Financial NewsEJ Tech Innovation Lab“

Following the lawsuit against OpenAI, a US artificial intelligence company, billionaire Elon Musk announced that he would file an antitrust lawsuit against the World Federation of Advertisers (WFA) and its members, including food group Unilever, chocolate producer Mars, pharmacy chain CVS Health, and Danish energy company Orsted, because of WFA’s “illegal practices” through the Global Alliance for Responsible Media (GARM).boycottSocial Platform X (formerly known as Twitter) caused billions of dollars in advertising losses, but did not specify the amount of compensation.

Musk publicly declared war on X and filed an antitrust lawsuit against WFA and its members. (Reuters file photo)

Musk’s social media XClear statement“For two years, we have tried to be friendly, but got nothing but empty words. Now, this is war.” The New York TimesQuotesAccording to X’s internal documents, the company’s revenue in the United States in the second quarter of this year was only $114 million, a significant drop of 25% from the first quarter and 53% less than the same period last year. The lawsuit mentioned that due to the reduction in advertiser spending, X was forced to reduce prices, but advertisers did not change their minds.

X CEO Linda Yaccarino told advertisersopen letterclaiming that the so-called illegal boycott is “a stain on a great industry that cannot be allowed to continue.” The letter cited Twitter’s traditional indicator “user active minutes”, which showed that netizens’ active minutes on the platform increased by 25% from August 2022 to more than 9 billion minutes. In terms of videos, daily views increased by 45% to 8.2 billion. SheAlso said“When the marketplace of ideas is restricted, people suffer. No small group should have a monopoly on something that can be monetized.”

Some netizens found that X tried to add a “payment” button to the bookmarks tab. (X’s online picture)

Moving headquarters to pave the way for payment business

On the other hand, application researcher Nima OwjiRecently discoveredX tried to add a “Payments” button to the navigation bar of the bookmark tab, which means that the payment service may be launched soon. Yaccarino sent an email earlier that X will soon close its San Francisco office and employees will move to San Jose and Palo Alto. MuskRespond to netizensHe said that it is impossible for a company engaged in payment business to continue operating locally, just as Stripe and Block (CashApp) chose to move away, and he described the choice as having no other choice.