The major companies and brands that abandoned X/Twitter when Elon Musk took over are fighting back at his decision to sue them. The companies that curtailed advertising on Musk’s social media platform X over concerns about its ability to control harmful content have reportedly asked a judge to dismiss a lawsuit accusing them of boycotting the billionaire entrepreneur’s company.
Musk’s takeover of Twitter in 2022 marked a significant shift in the platform’s direction. Musk aimed to promote free speech, ease content moderation, and address issues like bot accounts. His leadership led to mass layoffs, restructuring, and controversial policy changes, such as the introduction of paid verification and the unbanning of previously suspended accounts. The move sparked debates about the balance between free speech and moderation, with critics fearing the spread of misinformation and hate speech. Despite challenges, Musk’s vision reshaped Twitter’s identity, drawing both strong support and intense backlash from users and regulators.
“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 told the court.
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According to a filing in Texas federal court on Wednesday, the companies including CVS, Colgate-Palmolive, Mars, and Nestle, said that Musk’s X failed to show that they acted with any common plan, rather than making individual business decisions about when and where to spend ad dollars.
X’s lawsuit, filed in August 2024, said advertisers collectively withheld “billions of dollars in advertising revenue” from X, previously known as Twitter. It said the companies violated federal antitrust law by collectively agreeing to boycott spending ad dollars at X.
If Musk’s lawsuit is dismissed, it could have several consequences. First, it would signal that businesses are legally protected in their decisions to withdraw advertising from the platform, potentially setting a precedent for companies to exercise more control over where they place their ads, especially regarding brand safety and content moderation concerns.
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This dismissal could lead to continued financial strain for X, as ad revenue is a crucial source of income. Without successful legal action, Musk’s efforts to stabilize or grow the platform’s revenue through advertising would be more difficult. Companies may feel emboldened to continue avoiding the platform if they feel X’s policies conflict with their brand values.
Additionally, the dismissal could impact Musk’s broader vision for X, potentially undermining investor confidence or damaging the platform’s reputation as a reliable business partner. It might further embolden critics who question the platform’s direction under his leadership.