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Court rejects X's claims of advertiser boycott
A federal judge in Texas has dismissed a lawsuit filed by Elon Musk's X Corp, which accused major advertisers of orchestrating an illegal boycott to cut off billions in revenue from the platform.
Updated 27 March 2026 - Ruling issued Thursday in Dallas.
Allegations and background
X Corp, the parent company of the social media platform formerly known as Twitter, sued a coalition of advertisers in 2024. The defendants included consumer goods giants Unilever and Mars, Danish energy firm Ørsted, and the World Federation of Advertisers (WFA). The lawsuit claimed these companies conspired to withhold advertising dollars, violating U.S. antitrust laws designed to ensure fair competition.
The legal action followed a sharp decline in advertising revenue after Musk acquired Twitter in late 2022. Within a year, revenue had dropped by over 50% as several brands paused or reduced their spending on the platform.
X Corp argued that the advertisers acted against their own financial interests by coordinating a boycott, allegedly adhering to safety guidelines set by the WFA's Global Alliance for Responsible Media (GARM). GARM aims to address harmful content on digital platforms and its impact on advertising.
Judge's ruling and reasoning
U.S. District Judge Jane Boyle ruled that X Corp failed to demonstrate harm under federal competition laws. In her opinion, Boyle stated that GARM neither purchased advertising space from X nor instructed the platform to refuse direct sales to its members.
"The very nature of the alleged conspiracy does not state an antitrust claim, and the court therefore has no qualm dismissing with prejudice."
U.S. District Judge Jane Boyle
The judge's decision means the case cannot be refiled. The defendants, including CVS, had denied any wrongdoing, arguing that their advertising decisions were made independently based on business considerations.
Reactions and context
Following the acquisition, Musk implemented significant changes to the platform, including reinstating accounts of controversial figures and relaxing content moderation policies. These moves prompted concerns among advertisers about brand safety and the platform's alignment with their values.
In a post on X at the time of the lawsuit's filing, Musk wrote: "We tried being nice for 2 years and got nothing but empty words. Now, it is war."
X Corp has not yet responded to requests for comment on the ruling.
What's next
The dismissal marks a setback for X Corp's efforts to recoup lost advertising revenue through legal action. The company has not indicated whether it plans to appeal the decision. Meanwhile, the platform continues to explore alternative revenue streams amid ongoing challenges in attracting and retaining advertisers.
