Elon Musk loses big in court; X boycott perfectly legal

On Thursday, Elon Musk lost his lawsuit alleging that advertisers violated antitrust law by colluding on an ad boycott after he took over Twitter, gutted content moderation teams, and disbanded the Trust and Safety Council.

In her opinion, US District Judge Jane Boyle wrote that the lawsuit was dismissed because Musk failed to state a claim. His arguments that advertisers acted against their own best interests by avoiding advertising on his platform, now called X, did not plead facts showing that consumers were harmed. Without consumer harm, there can be no antitrust violation, the judge wrote, deeming the ad boycott perfectly legal.

“The very nature of the alleged conspiracy does not state an antitrust claim, and the Court therefore has no qualm dismissing with prejudice,” Boyle said. At one point, she emphasized, “the question underlying antitrust injury is whether consumers—not competitors—have been harmed.”