Elon Musk, CEO of Starlink. (Photo = Yonhap News)

 

 

[Alpha Biz= Paul Lee] X, owned by Elon Musk, has lost another antitrust lawsuit related to an alleged advertiser boycott.

A federal court in Texas on March 26 dismissed X’s lawsuit against the World Federation of Advertisers and several major corporations, rejecting claims that coordinated ad boycotts violated competition laws.

The court ruled that X failed to prove the boycott led to market dominance by rival social media platforms, stating that “losses resulting from competition itself do not constitute antitrust injury.”

Musk filed the lawsuit in 2024 after advertising revenue declined sharply following his 2022 acquisition and rebranding of Twitter into X. According to market research firm eMarketer, X’s global advertising revenue is projected to reach approximately KRW 3.3 trillion this year—less than half of Twitter’s pre-acquisition levels.

Separately, Musk is also challenging a jury verdict in another case tied to his acquisition of Twitter. His legal team has requested a court review, arguing that the jury’s decision was biased. The lawyers pointed out that the verdict highlighted a daily stock loss of $4.20 in blue ink, claiming it was a mocking reference.

The number “420” is widely associated with cannabis culture—a figure Musk himself has repeatedly used, including in his proposal to take Tesla private at $420 per share and in the $54.20 per-share acquisition price for Twitter.

Musk’s attorneys argued that the jury “abandoned its duty of impartiality and used the verdict to send a message.”

Meanwhile, X is undergoing restructuring ahead of a potential IPO of its parent company SpaceX. The company is reportedly laying off around 20 non-technical employees, including its chief marketing officer, as part of efforts to streamline operations following its merger with AI startup xAI and subsequent integration with SpaceX.

 

 

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