Judge dismisses X's antitrust lawsuit against Nestlé and major brands over ad boycott
A U.S. federal judge has thrown out a high-profile antitrust lawsuit involving Nestlé, Elon Musk's X platform, and other major corporations. The case centred on claims of an advertising boycott linked to X's handling of hate speech. Judge Jane Boyle ruled that X failed to prove any harm from alleged antitrust violations.
Nestlé, part of the Global Alliance for Responsible Media (GARM), was among the defendants cleared in the dismissal. The decision was final, with the case dismissed *with prejudice*—meaning it cannot be revived.
The lawsuit began after advertisers, including Nestlé, pulled budgets from X over concerns about its moderation policies. X accused the World Federation of Advertisers and brands like Mars, CVS Health, and Colgate-Palmolive of coordinating a boycott. The defendants, however, insisted their advertising decisions were made independently.
In her ruling, Judge Boyle found no evidence of antitrust harm. The dismissal came on Thursday in a Dallas court, bringing an end to the legal dispute. Despite the victory, Nestlé's shares dipped slightly by 0.61% following the news. The company's stock closed at €83.07, just below its 200-day moving average of €83.05. Analysts will now watch how the shares perform in upcoming trading sessions to gauge any lasting impact. The ruling did not address future collaboration between GARM and platforms like X on advertising standards.
The case is now permanently closed, with no further legal action possible. Nestlé and the other defendants remain free from the antitrust allegations. The stock's next moves will be closely monitored as investors assess the long-term effects of the decision.
