A United States federal judge has dismissed Elon Musk’s antitrust lawsuit against major advertisers, dealing a blow to X’s legal campaign over an alleged ad boycott following his takeover of Twitter.
US District Judge Jane Boyle ruled that Musk failed to establish a valid antitrust claim.
The court found no evidence that advertisers harmed consumers by pulling back spending on the platform, now known as X. Without consumer harm, Boyle said, antitrust law does not apply.
"The very nature of the alleged conspiracy does not state an antitrust claim, and the Court therefore has no qualm dismissing with prejudice," Boyle said. She further stressed, "the question underlying antitrust injury is whether consumers—not competitors—have been harmed."
Musk’s lawsuit targeted the World Federation of Advertisers and several multinational brands, including Shell, Nestle, Colgate, and Mars. X alleged they coordinated an "illegal boycott" under the umbrella of brand safety initiatives.
The court, however, sided with advertisers.
It found that companies acted within their rights to control where ads appear. Many brands had reduced spending after concerns about rising harmful content on the platform.
Advertisers had formed the Global Alliance for Responsible Media (GARM) to enforce shared standards. This initiative allowed brands to push platforms to meet content guidelines.
Platforms could join but did not control the group.
Judge Boyle noted that Musk appeared to underestimate this collective influence before acquiring Twitter.
Advertisers used coordinated pressure to demand compliance with brand safety norms.
That pressure included warnings of collective action if standards slipped.
The advertiser pullback hit X’s finances hard. At one point in 2023, revenue dropped by as much as 59 percent over a five-week period. The decline followed Musk’s overhaul of moderation systems and the disbanding of internal safety groups.
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