A U.S. judge has thrown out X Corp.’s antitrust legal action accusing the World Federation of Advertisers and major firms like Mars, CVS Health, and Colgate-Palmolive of unlawfully boycotting Elon Musk’s social media company. Judge Jane Boyle ruled in a Dallas federal court that X failed to demonstrate it suffered any harm under federal antitrust laws. The lawsuit, filed in 2024, alleged that advertisers, through an initiative by the World Federation of Advertisers called Global Alliance for Responsible Media, collectively withheld billions of dollars in advertising revenue from X, formerly known as Twitter.
X and the World Federation of Advertisers did not immediately respond to requests for comment. The lawsuit contended that advertisers conspired against the platform in violation of U.S. antitrust laws. Defendants like CVS denied any wrongdoing and urged the judge to dismiss the case, arguing that X failed to prove they acted collectively rather than making individual business decisions regarding advertising expenditures.
In a court filing, the companies stated that advertisers chose rival platforms independently due to concerns about X’s commitment to brand safety following Musk’s acquisition in 2022. Judge Boyle mentioned in her ruling that the alleged conspiracy did not constitute an antitrust claim, leading to the dismissal of the case.
Elon Musk’s acquisition of Twitter and subsequent management have led to legal disputes. Musk has sued Media Matters for America after a report highlighted antisemitic content next to ads for companies like Apple and Oracle on X. X accused Media Matters of manipulating algorithms to display advertisers’ posts next to controversial content.
A federal jury recently found Musk liable for defrauding Twitter shareholders in connection with a previous takeover bid. Musk’s lawyer criticized the jury’s conduct and called for a review of the verdict. The case involves potential damages of up to $2.5 billion. Musk’s lawyer argued that the jury’s actions, including writing the number “420” on the verdict form, raised concerns about the fairness of the trial.
Investors’ lawyers dismissed Musk’s criticisms of the court and jury, emphasizing the evidence presented during the trial. Musk was found liable for certain statements made after the buyout announcement, related to Twitter’s alleged bot activity. Shareholders claimed Musk’s comments negatively impacted Twitter’s stock price, leading to financial losses when they sold their shares.