U.S. judge dismisses lawsuit against advertisers filed by Elon Musk's X platform

A U.S. judge on Thursday dismissed a lawsuit filed by Elon Musk’s X platform. The lawsuit accused a group of advertisers and large companies of illegally boycotting the platform.

X Corp, the parent company of the X platform, filed the lawsuit in 2024, claiming that several entities, including food giants Unilever and Mars, renewable energy company Orsted, and the World Federation of Advertisers (WFA), conspired to cause it to lose “billions of dollars” in advertising revenue.

However, in Thursday’s ruling, U.S. District Judge Jane Boyle stated that the company failed to demonstrate that it suffered any harm under federal antitrust law.

The lawsuit by X Corp was filed in 2024 in Texas. Prior to this, Musk acquired X’s predecessor Twitter in 2022, which led to a decline in the platform’s advertising revenue.

The tech billionaire implemented sweeping reforms on the platform after acquiring Twitter, including reinstating some controversial accounts and lifting certain content restrictions.

Less than a year after Musk’s acquisition of the X platform, advertising revenue dropped by more than half due to some companies suspending or reducing their promotional activities on the platform.

The lawsuit alleged that this group of advertisers conspired to suppress the platform for their own economic benefit, violating U.S. antitrust laws aimed at promoting fair competition among businesses.

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Editor: Yu Jian SF069