Advertisers push back against X’s lawsuit, deny antitrust violations

Nestlé SA, Shell PLC, Abbott Laboratories and several other global corporations have denied participating in a coordinated advertising boycott of Elon Musk’s social media platform, X, formerly known as Twitter. The companies made the assertion in a joint court filing submitted to a federal judge in Texas, seeking dismissal of a lawsuit filed by X.

The legal dispute stems from a suit brought by X Corporation, which accuses multiple firms of engaging in an unlawful advertising boycott following Musk’s acquisition of the platform. X claims that the alleged boycott resulted in billions of dollars in losses for its advertising business.

The defendants, including CVS Health Corp., Mars Inc., Lego A/S, Pinterest Inc., Orsted A/S, Colgate-Palmolive Co., and Tyson Foods Inc.—contend that their decisions to suspend, reduce or withdraw advertising were made independently in response to the platform's perceived decline in content moderation. Musk's policy changes, aimed at promoting free speech, have reportedly led to the unchecked spread of antisemitic content and other toxic commentary.

“X Corporation’s suit is 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,” the companies’ legal counsel stated in the filing.

They further argued that their actions do not violate antitrust laws. “Antitrust law does not require advertisers to keep doing business with a platform that degrades the quality of its service,” the filing read. “Neither does it presume an illegal conspiracy when advertisers make rational, independent business decisions.”

X, which Musk purchased for $44 billion in 2022, has struggled with advertiser retention since loosening content rules that had previously governed the platform. In August 2024, X filed a lawsuit against the World Federation of Advertisers over the mass advertiser exit, later naming individual companies as defendants.

Despite the turbulence, X’s advertising business is showing signs of recovery. A recent report from research firm Emarketer projects that X will generate $1.31 billion in U.S. advertising revenue in 2025—a 17.5% year-on-year increase, marking its first year of growth since Musk’s acquisition.

 

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