WASHINGTON — March 26 (GeokHub) — A U.S. federal judge has dismissed an antitrust lawsuit filed by X Corp, rejecting claims that major advertisers conspired to boycott the social media platform owned by Elon Musk.
The ruling marks a significant legal setback for the company in its effort to challenge declining advertising revenue following changes made after Musk’s takeover.
Court Finds No Evidence of Harm
U.S. District Judge Jane Boyle ruled that X Corp failed to demonstrate that it suffered harm under federal antitrust laws.
In her decision, the judge stated that the allegations presented did not meet the legal threshold required to establish an unlawful conspiracy among advertisers.
The case was dismissed with prejudice, meaning it cannot be refiled in its current form.
Allegations of Coordinated Boycott
The lawsuit, originally filed in 2024, accused the World Federation of Advertisers and several major corporations of coordinating an illegal boycott.
Companies named in the case included Mars, CVS Health and Colgate-Palmolive.
X claimed that the group, through an initiative focused on responsible media practices, withheld billions of dollars in advertising spending from the platform.
Advertisers Deny Wrongdoing
The defendants argued that their decisions were made independently based on business considerations, not as part of a coordinated effort.
They said concerns about brand safety and content moderation on the platform influenced where they chose to allocate advertising budgets.
Since Musk acquired the platform in 2022, X has faced scrutiny over its content policies and changes to internal operations.
Legal and Business Implications
The dismissal reinforces the legal standard required to prove antitrust violations, particularly in cases involving alleged coordination among private companies.
For X Corp, the outcome highlights ongoing challenges in rebuilding advertiser confidence and stabilizing its revenue streams.
The platform, formerly known as Twitter, has been working to attract brands back while competing with other digital advertising channels.
Broader Industry Context
The case reflects wider tensions between social media platforms and advertisers over issues such as content moderation, brand safety and platform governance.
As digital advertising remains a primary revenue source for social media companies, maintaining trust with advertisers is critical for long-term sustainability.
