A U.S. federal judge dismissed X Corp’s antitrust lawsuit against the World Federation of Advertisers and major companies, including Mars, CVS Health, and Colgate-Palmolive, for allegedly boycotting the platform. The lawsuit, filed in 2024, claimed the advertisers collectively withheld billions in ad revenue from X, violating U.S. antitrust laws. Judge Jane Boyle ruled that X failed to demonstrate harm under federal antitrust laws, dismissing the case with prejudice.
X Corp, owned by Elon Musk, argued that the advertisers acted against their economic interests in a conspiracy against the platform. The defendants denied wrongdoing, asserting they made independent business decisions due to concerns about brand safety following Musk’s 2022 takeover. The companies cited Musk’s firing of employees who maintained a "welcoming" environment for family-friendly brands as a key factor in their decisions.
The lawsuit was partly spurred by an investigation by House Judiciary Committee Chairman Jim Jordan into whether advertisers were illegally demonetizing conservative platforms. X Corp’s revenue has declined since Musk’s acquisition, with estimates suggesting it will reach $2.2 billion in 2026, down from $4.5 billion pre-acquisition. X has since attempted to reassure advertisers by emphasizing brand safety measures and promoting block lists to avoid controversial content.