Court tosses out X's suit that accused major advertisers of illegally boycotting the Elon Musk-owned platform
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- A court dismissed a lawsuit by Elon Musk's X that had accused advertisers of illegally boycotting the platform.
- The Texas federal judge cited a lack of jurisdiction and X's failure to state a claim.
- The defendants included Mars, Lego, and Nestlé.
A court tossed out a lawsuit filed by Elon Musk's X that accused big advertisers like Mars, Lego, and Nestlé of illegally boycotting the platform.
A US District Court judge in Texas dismissed the case, citing a lack of jurisdiction and X's failure to state an antitrust claim.
X sued several major brands in August 2024, alleging their participation in an ad industry initiative called the Global Alliance for Responsible Media, GARM, was tantamount to a conspiracy to "collectively withhold billions of dollars in advertising" from X after Musk's takeover of the company, then known as Twitter. It later added other brands to the suit.
X claimed the alleged boycott made it less competitive than other platforms in winning advertisers and user engagement.
Other plaintiffs named in the suit were the World Federation of Advertisers, CVS Health, Ørsted, Twitch, Abbott Laboratories, Colgate-Palmolive, Pinterest, Tyson, and Shell.
WFA shut down GARM, its initiative, after the suit was filed, citing limited resources.
The suit was partly spurred by an investigation by the chairman of the House Judiciary Committee, Jim Jordan, into whether advertisers were illegally banding together to demonetize conservative platforms and voices in violation of antitrust law.
The plaintiffs fought back, calling the lawsuit "an attempt to use the courthouse to win back the business X lost in the free market when it disrupted its own business and alienated many of its customers."
X's relationship with advertisers has been fraught since Musk bought the platform in 2022. Advertisers left en masse as X loosened moderation and account-verification rules and reinstated the banned accounts of some provocative figures.
EMARKETER, Business Insider's sister company, estimated its revenue would reach $2.2 billion in 2026, below its pre-acquisition level of $4.5 billion.
X has tried to win back advertisers by underscoring its commitment to brand safety and promoting its use of block lists that let advertisers avoid showing up around certain topics.
X did not immediately respond to a request for comment from Business Insider.