Elon Musk's company, X, has initiated a lawsuit against several major advertisers, alleging a coordinated ad boycott following his acquisition of the platform.

On February 1, 2025, X filed an amended complaint, adding new defendants including Lego, Nestlé, Tyson Foods, Abbott Laboratories, Colgate-Palmolive, Pinterest, and Shell International.

The lawsuit claims that the advertising boycott has significantly harmed X's revenue, with the platform reportedly 80% below revenue forecasts shortly after the boycott began.

X argues that the coordinated actions among advertisers undermine competition and consumer interests, allowing powerful advertisers to impose their standards on the platform.

In response to the legal challenges, the World Federation of Advertisers (WFA) plans to contest the lawsuit and asserts its compliance with competition laws.

The lawsuit seeks treble compensatory damages and injunctive relief for alleged violations of US antitrust laws, emphasizing the need for independent brand safety standards.

Despite the ongoing boycott, some advertisers, including Amazon and Warner Bros. Discovery, are cautiously returning to X, although their spending remains significantly lower than before.

X's legal team contends that social media platforms should independently determine their brand safety standards, rather than adhering to those dictated by a collective of advertisers.

The advertising landscape on X has shifted, with most current ads coming from small to medium-sized companies, indicating a decline in major brand participation.

Since Musk's acquisition, X has seen a substantial drop in trust among marketers, with only 4% viewing it as brand-safe, prompting many to reduce or halt their advertising.

Musk's approach to free speech has created tensions with advertisers, particularly as brands have withdrawn due to concerns over problematic content on the platform.

The lawsuit and the surrounding controversies highlight the ongoing challenges X faces in stabilizing its advertising revenue and restoring relationships with major brands.