On Thursday, Elon Musk lost his lawsuit alleging that advertisers violated antitrust law by colluding on an ad boycott after he took over Twitter, gutted content moderation teams, and disbanded the Trust and Safety Council.
In her opinion, US District Judge Jane Boyle wrote that the lawsuit was dismissed because Musk failed to state a claim. His arguments that advertisers acted against their own best interests by avoiding advertising on his platform, now called X, did not plead facts showing that consumers were harmed. Without consumer harm, there can be no antitrust violation, the judge wrote, deeming the ad boycott perfectly legal.
“The very nature of the alleged conspiracy does not state an antitrust claim, and the Court therefore has no qualm dismissing with prejudice,” Boyle said. At one point, she emphasized, “the question underlying antitrust injury is whether consumers—not competitors—have been harmed.”
For Musk, the loss is likely significant. He had argued that advertisers should be “criminally prosecuted” after allies in Congress released a report claiming they were conspiring to tank Twitter’s revenue with the supposed goal of censoring conservative voices.
The lawsuit was also part of a larger “thermonuclear” legal fight that Musk started when he sued Media Matters for America for their reporting that he claimed prompted the boycott. That lawsuit remains ongoing but may be hobbled by the judge ruling that there was no illegal boycott.
As of this writing, Musk has not commented on the ruling, and X did not respond to Ars’ request to comment.
It seems likely, though, given Musk’s heated public statements about the litigation, that X will appeal.
Source: arstechnica.com
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