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X settles lawsuit with Unilever

Lawsuit Settles
Lawsuit Settles

X, the social media platform formerly known as Twitter, has reached a settlement with Unilever, resolving a portion of its ongoing antitrust lawsuit against several advertisers. The lawsuit, filed in August, accused Unilever and other companies of orchestrating an illegal ad boycott due to alleged failures to meet brand safety standards on the platform. In a statement, an X spokesperson confirmed that the claims against Unilever have been resolved and that the company plans to resume advertising on the platform.

“X is pleased to have reached an agreement with Unilever and to continue our partnership with them on the platform,” the spokesperson said. A Unilever spokesperson stated, “Unilever has reached an agreement with X, which has committed to meeting our responsibility standards to ensure the safety and performance of our brands on the platform.” However, the spokesperson declined to comment further on the specific terms of the agreement. The lawsuit initially named Unilever as a defendant alongside the Global Alliance for Responsible Media (GARM), a now-defunct unit of the World Federation of Advertisers (WFA), as well as CVS Health, Mars, and Orsted.

X settles dispute with Unilever

While the claims against Unilever have been settled, X continues to pursue antitrust claims against the remaining defendants. X CEO Linda Yaccarino described the lawsuit as a key step toward fixing a “broken” ecosystem in digital advertising.

“We were victimized by a small group of people pushing their authority or ability to monopolize what gets monetized,” Yaccarino said. “GARM was just a symptom, but finding the root cause of the entire ecosystem being broken, that’s what the suit is about.”

The settlement comes amid an ongoing investigation by the GOP-led House Judiciary Committee into alleged efforts by GARM and its executive Robert Rakowitz to stifle the flow of ad dollars to various outlets. Over 40 companies have received letters requesting information and documents related to their dealings with GARM.

As the industry awaits further details of the settlement, the focus remains on how digital advertising standards and practices will evolve in the wake of these disputes. GARM was shut down in August following mounting legal and operational challenges, and the remaining defendants in X’s lawsuit have yet to comment on the case.

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