Mar 27, 2026, 7:21 a.mMar 27, 2026, 7:21 a.m
Elon Musk’s online platform X has failed with a lawsuit against several large advertising customers who withdrew ads from the service. Among other things, a judge in Texas ruled that X was unable to substantiate the accusation of unfair competition and dismissed the lawsuit.
Elon Musk at the WEF in Davos.Image: keystone
Musk’s platform went to court in August 2024. Their allegations were directed against well-known companies such as the consumer goods giant Unilever, the food company Mars and the toy manufacturer Lego, as well as against an association of advertisers.
The companies had reduced or stopped their advertising activities on Twitter and later
Advertising revenue halved
Musk complained several times that as a result of the exodus of large and small advertising customers after he took over Twitter in October 2022, advertising revenue was roughly halved.
In the lawsuit, X spoke of a coordinated boycott and a violation of competition law. Dozens of members of an international organization of advertising customers colluded to withhold several billion US dollars from X. The lawsuit specifically targeted an industry initiative that established requirements for advertising platforms.
Musk later brought the X platform into his AI company xAI, which was then taken over by the space company SpaceX, which he also runs. This means that X is no longer solely dependent on its own business or cash injections directly from Musk for its continued existence. (dab/sda/dpa)