US judge dismisses X Corp's advertiser boycott lawsuit
The Facts
- A U.S. federal judge in Texas dismissed X Corp’s antitrust lawsuit against advertisers and the World Federation of Advertisers.
- Judge Jane Boyle said X failed to show it suffered harm under federal antitrust laws.
- The lawsuit was filed in 2024 in Texas after X said advertisers had withheld billions of dollars in revenue from the platform.
- The defendants named in the case included the World Federation of Advertisers and major companies such as Mars, Unilever, Lego, CVS Health, Colgate-Palmolive, Shell and Nestlé, depending on the reporting.
- X argued that the advertisers acted through the World Federation of Advertisers’ Global Alliance for Responsible Media initiative.
- The case followed a decline in advertising revenue after Musk acquired Twitter in 2022 and changed the platform’s content moderation policies.
- Some reports said the judge also found the court lacked jurisdiction over several of the companies named in the lawsuit.
Context
What was X accusing the advertisers of doing?
X said the companies and the World Federation of Advertisers conspired to boycott the platform and collectively withhold billions of dollars in advertising revenue, in part through the GARM initiative BBC,NY Post.
Why did the judge dismiss the case?
According to the reporting, Judge Jane Boyle found that X had not shown an antitrust injury or harm under federal competition law; some outlets also reported that the court lacked jurisdiction over some defendants BBC,Hill.
What happened to X’s ad business before the lawsuit?
The lawsuit came after X saw a decline in advertising revenue following Musk’s 2022 purchase of Twitter, which several reports linked to changes in the platform’s content rules BBC,Business Insider.
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