A U.S. judge threw out X Corp.’s antitrust lawsuit alleging that the World Federation of Advertisers and major companies such as Mars, CVS Health, and Colgate-Palmolive engaged in an illegal boycott against Elon Musk’s social media platform. District Judge Jane Boyle in Dallas ruled that X did not demonstrate any harm under federal antitrust laws. The lawsuit, filed in 2024, accused advertisers of withholding billions in ad revenue from X, formerly known as Twitter, through the Global Alliance for Responsible Media initiative. X and the World Federation of Advertisers did not provide immediate comments.
The lawsuit argued that advertisers conspired against the platform, violating U.S. antitrust laws, but CVS and other defendants denied wrongdoing. They contended that X failed to prove coordinated action, as they made individual decisions on ad spending. Advertisers reportedly chose other platforms due to concerns about X’s brand safety after Musk’s 2022 takeover, which involved firing employees deemed supportive of family-friendly brands.
Judge Boyle dismissed the case, stating that the alleged conspiracy did not constitute an antitrust violation. Musk’s leadership of Twitter has led to legal challenges, including a lawsuit against Media Matters for America over antisemitic content appearing alongside ads. Musk was recently found liable for defrauding Twitter shareholders by manipulating stock prices in 2022. His lawyer has requested a review of the verdict, questioning the jury’s integrity.
Musk’s lawyer criticized the jury’s actions, pointing out a numerical reference associated with marijuana culture that appeared on the verdict form. The lawyer argued that such actions undermined the fairness of the trial. Investors’ attorneys dismissed these claims, emphasizing the evidence presented at trial. The jury held Musk responsible for certain statements affecting Twitter’s stock price, leading to financial losses for investors.
The ongoing legal battles surrounding Musk’s involvement with Twitter, now X, continue to unfold, with stakeholders closely monitoring the outcomes.