During the past month, a number of users noticed an advertisement on a social media site, apparently posted by the @AppleTV handle, promoting the second season of the show titled Severance.
Apple recently resumed advertising on platform X after over a year-long hiatus due to concerns about far-right content and backlash against Elon Musk’s endorsement of antisemitic conspiracy theories. This decision aligns with other brands who have either restarted or intensified their spending on X, particularly Amazon, during the same timeframe, which also saw Musk’s political rise.
Five Democratic senators have expressed worries about Elon Musk potentially using his influence within the Trump administration, and they’ve called on the Department of Justice to examine if Musk may be breaching federal ethical regulations in this regard.
On Wednesday, Senators Elizabeth Warren, Cory Booker, Richard Blumenthal, Adam Schiff, and Chris Van Hollen penned a letter to the Department of Justice, expressing concerns about Elon Musk potentially pressuring businesses to rejoin his platform under the threat of retaliation. They referenced an incident mentioned in The Wall Street Journal, where a lawyer for the company supposedly coerced Interpublic Group to increase spending on Elon Musk’s social media platform, or face consequences.
The message in Interpublic’s letter was clear: if their advertisers don’t boost revenue for X, there’s a possibility that Elon Musk, through his influence in the Trump Administration, might delay or prevent altogether, the $13 billion merger of Interpublic with its competitor. This merger needs to be approved by antitrust authorities like the DOJ.
Currently, Musk serves as the leader of the Efficiency in Government Department and is often spotted with Trump at the White House. Following his acquisition of Twitter in 2022, he swiftly aimed to align the platform with his beliefs about free speech. This led to actions such as reactivating suspended accounts, like those belonging to Kanye West and Donald Trump, and introducing a new paid verification system that enabled certain users to mimic brands.
Easing up on content moderation guidelines led to a mass departure of advertisers due to fears that their ads might be displayed alongside or linked with questionable content. A study conducted by Media Matters for America, a nonprofit organization that has been involved in legal disputes with Musk, published last year claimed that the platform was positioning ads for firms like “Apple, Bravo (NBCUniversal), IBM, Oracle, and Xfinity (Comcast)” near content promoting Adolf Hitler and his Nazi Party. Major corporations such as Disney, Warner Bros. Discovery, Paramount, Sony Pictures, and Lionsgate were among those who chose to discontinue their association with the platform.
In their letter, the senators expressed concern about Elon Musk reportedly making threats regarding policy consequences towards advertisers as he transitioned into his new role within the administration. They recommended that federal investigators look into potential breaches of ethics laws by Musk, such as bribery and engaging in matters where he has a financial stake, which is strictly forbidden.
The senators wrote that the Department of Justice’s choice regarding whether to block the Interpublic merger could now be connected to X’s ad revenue, thereby placing Elon Musk in a position where he has a personal interest in the final decision.
In an additional correspondence, the senators additionally addressed a letter to the Federal Trade Commission, expressing concerns about Elon Musk potentially retaliating against Interpublic Group. This could involve exerting influence over the agency to halt its merger or offering bribes by urging Trump to approve its partnership with Omnicom, in return for more X clients investing in advertising. They highlighted a potential conflict of interest between Musk’s government role and his multiple businesses as their reason for concern. (It is reported by The Wall Street Journal that Interpublic Group has recently agreed to a new deal with X regarding potential ad spending.)
Companies like Disney, Lionsgate, Warner Bros. Discovery, and Comcast, along with others, have restarted their advertising on platform X, as per market intelligence firm MediaRadar’s report. However, collectively, they spent only around $3.3 million from January to September this year – a staggering 98% drop compared to the same period last year.
As a gamer, I found it quite heartening to see Disney and Apple ramp up their advertising spend again this summer. These two giants had been among my biggest sponsors before the change in leadership, so their return was definitely a positive sign for me.
Previously, the Department of Justice lodged a groundbreaking antitrust complaint against Apple, accusing it of a monopolistic stance in the smartphone market and tactics designed to maintain iPhone users’ loyalty and discourage them from transitioning to competing products.
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2025-03-08 00:54