US Judge Dismisses X’s Advertising Boycott Lawsuit
A US federal judge has dismissed a lawsuit filed by X Corp, owned by Elon Musk, which accused major advertisers of coordinating a boycott against the platform.
The case, brought in 2024, alleged that companies including Unilever, Mars Inc, Ørsted, and the World Federation of Advertisers conspired to withhold advertising spend, costing the platform billions of dollars.
However, US District Judge Jane Boyle ruled that X failed to demonstrate any harm under federal antitrust laws. In her decision, she said the allegations did not meet the legal threshold required to prove an unlawful conspiracy.
The lawsuit followed a sharp decline in advertising revenue after Musk’s 2022 acquisition of the platform, formerly known as Twitter. The company had argued that advertisers acted against their own business interests by collectively reducing spending due to shared brand safety concerns.
Defendants in the case maintained that their decisions were made independently, based on internal policies and risk assessments. The court agreed, noting there was no evidence of coordinated action that violated competition laws.
Judge Boyle also referenced the role of the Global Alliance for Responsible Media, an initiative focused on addressing harmful content online, stating it did not function as a gatekeeper controlling advertising activity on the platform.
The dismissal, issued “with prejudice,” means the case cannot be refiled in its current form.
The ruling represents a setback for X as it continues efforts to rebuild advertiser confidence and stabilise revenue following significant changes to the platform under Musk’s leadership.
