Text settings Story text Size Small Standard Large Width * Standard Wide Links Standard Orange * Subscribers only Learn more Minimize to nav Elon Musk’s X is trying to revive a lawsuit against advertisers it’s accusing of illegally boycotting the social media platform, despite previously reaching a settlement to end litigation against an ad-industry trade group.
“This case involves an unusually brazen group boycott,” X said in a filing yesterday. “That misconduct has drawn the attention of regulators and Congress. There is no valid reason that this effort by the direct victim to recover its massive economic losses from that boycott should not move forward.”
X’s lawsuit was thrown out in March when US District Judge Jane Boyle in the Northern District of Texas ruled that advertisers did not commit any antitrust violation. Last week, Musk reached a settlement with the World Federation of Advertisers, the first defendant named in the lawsuit.
But Musk’s lawsuit had other defendants: Mars, Incorporated; CVS Health; Nestle; Abbott Laboratories; Colgate-Palmolive; Lego; Pinterest; Tyson Foods; Shell; and Ørsted A/S. While X agreed to dismiss the World Federation of Advertisers from the case, it urged the US Court of Appeals for the 5th Circuit to revive the suit with respect to the other defendants.
The boycott “injured X and competition in that market, allowing other social-media platforms to charge rates above truly competitive pricing,” the company said. “Especially in light of the power defendants wield within the market, their agreement to boycott X cannot be characterized as anything other than an unreasonable restraint on trade.”
Boyle’s decision dismissing Musk’s lawsuit said the “only harm X has asserted is that its customers collectively chose X’s competitors over X.” Boyle, a George W. Bush appointee, cited a precedent that a loss from competition itself does not constitute an antitrust injury. “Therefore, although a group boycott is alleged, there is no antitrust violation here,” she wrote.
Asking the 5th Circuit to reverse Boyle, X argued that advertisers colluded to boycott X, “eliminat[ing] the independent decision-making that would otherwise force each firm to weigh the competitive benefits of continuing to advertise on the platform, suppressing competitive rivalries and insulating the boycott from market forces. The group boycott targeting X thus distorts competition in multiple markets in clear contravention of the antitrust laws.”
X’s claims relate to the Global Alliance for Responsible Media (GARM), an initiative by the World Federation of Advertisers to define violent and obscene content and help advertisers create brand-safety guidelines. The ad industry shut down Garm after Musk filed the lawsuit in 2024, though law professors described X’s legal case as a weak one.
X’s filing yesterday said that GARM “exercised collective power through its rules for membership. As a condition of joining GARM, members agree[d] to adopt GARM solutions to improve business operations.’ For GARM’s advertiser and advertising agency members, that meant agreeing to enforce the implementation of the Brand Safety Standards by the social-media platforms from which they purchased advertising.”
X, then called Twitter, suffered a large drop in advertising revenue after Musk bought the company in October 2022 and made major changes to content moderation. Advertisers stayed away, worried that ads would appear next to antisemitic posts, misinformation, and other objectionable content.
Specific numbers on X ad revenue were hard to come by the past few years because Musk took the company private when he bought Twitter. But X Corp. is now a subsidiary of SpaceX, which recently went public and must report earnings.
SpaceX’s earnings report this week said the company made $367 million in advertising revenue in Q2 2026, down from $426 million in Q2 2025. For the first six months of 2026, ad revenue was $710 million, down from $870 million in the first six months of 2025.
Twitter reported much higher ad revenue before being bought by Musk. “X’s current quarterly ad revenue has dropped even more drastically compared to the last quarter before Musk bought the popular social-media platform,” MediaPost reported. “In the second quarter of 2022, Twitter reported $1.08 billion in ad revenue, roughly $713 million more than Q2 2026.”
