‘It’s straight up extortion’: Elon Musk allegedly threatened advertisers to spend more money on X or face government retaliation
Advertising executives allege that Elon Musk may be using his newfound government power to threaten them to increase their spending on his social media platform, X.
If true, the allegations confirm what America has long suspected of Musk: it is dangerous to give a private, unelected citizen the level of power Donald Trump has awarded him. Since Trump’s inauguration, Musk has essentially become co-president of the United States. He hovers around the president 24/7, does joint interviews with Trump, and seems to be calling the shots on what government departments to dismantle and funds to cut. It’s unprecedented for any private citizen to have this level of proximity and power over the president, but it’s especially dangerous that this person is Musk, a billionaire with conflicts of interest all over the government. Given that the Trump administration claimed he had been entrusted to self-police himself, nothing is stopping him from using the government to benefit himself or using his proximity to Trump as leverage.
Now, reports suggest Musk may already be using his government position to propel his business interests.
Did Elon Musk threaten advertisers with government reprisal?
The Wall Street Journal recently published a bombshell report in which an advertising lawyer alleges Musk has been levying loaded threats at them. A lawyer from the advertising company Interpublic Group partook in a phone call from an X lawyer, alleging they sent a clear message to spend more money on Musk’s X “or else.” Inside sources claim X CEO Linda Yaccarino has made similar threats in conversations with Interpublic executives. So, what does that “or else” threat mean?
Interpublic executives believe it was a reference to Musk’s government power. After all, the Trump administration could interfere with Interpublic’s $13 billion deal to merge with Omnicom Group. The deal has sparked anti-competitive concerns and will require regulatory approval from the government. Hence, Interpublic executives interpreted the threat to mean that Musk could direct the Trump administration to thwart or slow down that lucrative deal unless they spend more money on X.
In response to the allegation, Interpublic stated, “We do not make spending commitments on behalf of clients to any partner or platform, and decision-making authority always rests with the client.” The statement noticeably did not refute The Wall Street Journal‘s reporting. If the report is accurate, the implications are enormous. Newsweek opinion editor Batya Ungar-Sargon called the report “truly disturbing,” noting, “This goes beyond a conflict of interest. It’s straight up extortion.”
If Musk really is using the Trump administration as leverage in business matters, it’s a blatant abuse of power. As Ungar-Sargon stated, it is essentially extortion. It would also illustrate how far the government has fallen in less than two months. Months ago, it would’ve been unfathomable for business people entwined in the government to threaten government retaliation unless companies gave them money. Now, it’s a possibility and one that likely won’t even surprise many who have been warning of Musk’s conflicts of interest for weeks.
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