A court has dismissed Elon Musk’s X lawsuit that accused major advertisers of coordinating an illegal boycott of the platform, marking a significant setback for the company.
A Texas federal judge threw out the case, citing lack of jurisdiction and X’s failure to present a valid antitrust claim. The ruling effectively ends X’s attempt to challenge what it described as a coordinated withdrawal of advertising revenue.
The lawsuit targeted major brands including Mars, Lego, and Nestlé, alleging they worked together through an industry initiative to withhold billions in ad spending following Musk’s takeover of the platform. X argued the move damaged its competitiveness and ability to attract advertisers.
The case was closely tied to tensions between X and the advertising industry, which escalated after the platform loosened moderation policies and made changes that led many brands to pull back spending over brand safety concerns.
The dismissal highlights the difficulty of proving coordinated advertiser boycotts under antitrust law and underscores the broader challenges X faces in rebuilding trust and stabilizing its advertising business.