A U.S. federal judge has dismissed a lawsuit brought by X Corp, which accused several major companies and an industry group of coordinating an illegal boycott that reduced advertising revenue on the platform.
Jane Boyle ruled that X failed to demonstrate it had suffered harm under federal antitrust laws, bringing the case to an end.
Claims Against Advertisers And Industry Group
The lawsuit, filed in 2024, alleged that companies including Unilever, Mars, Orsted, and the World Federation of Advertisers conspired to withhold advertising spending.
X claimed the alleged coordination deprived the company of billions of dollars in revenue and violated U.S. competition laws.
The complaint also cited the Global Alliance for Responsible Media, an initiative under the World Federation of Advertisers, as a factor influencing advertiser decisions.
Court Findings And Legal Reasoning
Judge Boyle said the nature of the alleged conduct did not meet the threshold for an antitrust violation. In her written opinion, she stated that the advertising group did not control or direct purchases of ad space on the platform.
She concluded that the claims did not establish a valid case under competition law and dismissed the lawsuit with prejudice.
Background On Revenue Decline
The case followed a significant drop in advertising revenue after Elon Musk acquired the platform in 2022.
Changes introduced after the acquisition, including adjustments to content moderation policies and the reinstatement of certain accounts, led some advertisers to reduce or pause spending. Within a year of the takeover, advertising revenue had fallen by more than half.
X argued that advertisers had acted against their own financial interests as part of a coordinated effort.
Defendants’ Response
The companies named in the lawsuit denied wrongdoing and said their advertising decisions were made independently.
They argued that X had not provided sufficient evidence of coordination or conspiracy, a position the court ultimately supported.
Featured image credits: Flickr
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