A U.S. judge has thrown out X Corp.’s antitrust lawsuit against the World Federation of Advertisers and key companies like Mars, CVS Health, and Colgate-Palmolive for allegedly boycotting Elon Musk’s social media platform. U.S. District Judge Jane Boyle ruled that X failed to demonstrate any harm under federal antitrust laws. The lawsuit, filed in 2024, claimed that advertisers, through a World Federation of Advertisers initiative called Global Alliance for Responsible Media, collectively held back “billions of dollars in advertising revenue” from X, formerly known as Twitter. X and the World Federation of Advertisers have not yet commented on the dismissal.
The lawsuit contended that the advertisers conspired against the platform, going against their own economic interests, which violated U.S. antitrust laws. CVS and other defendants denied any wrongdoing, arguing that X did not prove they acted collectively rather than making individual business decisions on advertising spending. In a court filing, the companies stated that advertisers opted for rival platforms due to concerns about X’s commitment to brand safety following Musk’s 2022 takeover, where he dismissed employees responsible for maintaining a user-friendly and family-oriented platform.
Judge Boyle stated in her order that the alleged conspiracy did not constitute an antitrust claim, leading to the dismissal with prejudice. Elon Musk’s acquisition of Twitter and his management style have resulted in legal challenges. Musk also sued Media Matters for America after a report in 2023 linked antisemitic content appearing alongside ads for companies like Apple and Oracle on X. X accused Media Matters of manipulating algorithms to display ads near controversial content, with the case ongoing.
A recent U.S. federal jury found Musk liable for defrauding Twitter shareholders by attempting to lower the company’s stock price to renegotiate or cancel a $44 billion takeover in 2022. Musk’s lawyer has requested a review of the verdict, alleging juror misconduct, including writing “$4.20” on the verdict form, associated with marijuana culture. The lawyer argued that this, along with other trial errors, raises doubts about the verdict and the potential $2.5 billion in damages. Shareholders accused Musk of damaging Twitter’s stock value through his comments, leading to financial losses upon selling shares at reduced prices.