X Corp, led by Elon Musk, settled an antitrust lawsuit accusing major advertisers like Mars and CVS Health of slashing ad spending by over 70% following Musk's 2022 takeover. The lawsuit, filed in August 2024, claimed these brands coordinated a boycott to withhold billions in advertising revenue amid concerns over content moderation changes.
The legal battle lasted nearly two years and ended when a federal judge dismissed the case in March 2026, citing a lack of proven antitrust injury and jurisdiction issues. Unilever had already settled separately in late 2024, becoming the first major advertiser to leave the dispute.
While the exact terms of the recent settlement remain confidential, this resolution closes a turbulent chapter for X Corp’s advertising revenue streams, which were deeply impacted by the boycott. The fallout also led to the disbanding of the Global Alliance for Responsible Media, an industry group that helped coordinate ad safety standards.
This article is for informational purposes and not financial advice.
