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  • Texas AG loses appeal to seize evidence for Elon Musk’s ad boycott fight

    Texas Attorney General Ken Paxton has failed to reverse a preliminary injunction currently blocking him from probing Media Matters for America (MMFA) in defense of Elon Musk’s social media platform X.

    On Friday, a US appeals court upheld the injunction. In his opinion, senior Circuit Judge Harry T. Edwards wrote that there was “ample” evidence that Paxton “pursued a retaliatory campaign” against MMFA “because they published an unfavorable article about X.com.” And MMFA has standing to raise a First Amendment defense, because “the First Amendment generally ‘prohibits government officials from subjecting individuals to retaliatory actions after the fact for having engaged in protected speech,” Edwards wrote.

    Edwards noted that the day after X sued MMFA over reporting on antisemitic posts appearing next to big brands’ ads on X—alleging the report fraudulently spawned an ad boycott—Paxton announced a broad probe into MMFA that, he confirmed in a press release, was directly due to X’s lawsuit.

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  • Twitch makes deal to escape Elon Musk suit alleging X ad boycott conspiracy

    Twitch has struck a deal with Elon Musk’s X (formerly Twitter) to eject itself from a lawsuit over an ad boycott shortly following Musk’s takeover of Twitter in October 2022.

    In a court filing Monday, X lawyers provided no details on the deal but explained that “X and Twitch have entered into a memorandum of understanding resolving the action as to Twitch,” so long as “certain conditions” are met by December 31.

    Musk has called for “criminal prosecution” of anyone involved in the ad boycott. But while Twitch was one of about a dozen companies that X directly accused of conspiring to withhold billions in ad revenue from then-Twitter, it was not part of X’s initial complaint. The livestreaming service was only added to the lawsuit after X amended its complaint in November to pull in more advertisers, and since then, Twitch has never responded to any of X’s accusations. Instead, in its filing, X speaks for Twitch.

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  • Big brands are spending small sums on X to stay out of Musk’s crosshairs

    Big brands are allocating small amounts of their advertising budget to Elon Musk’s X, seeking to avoid being seen as boycotting the social media platform and triggering a public fallout with its billionaire owner.

    Multiple marketing executives told the Financial Times that companies have felt pressure to spend a nominal sum on X following Musk’s high-profile role in US President Donald Trump’s administration.

    They said Musk’s pursuit of legal action against groups that have stopped advertising since his $44 billion acquisition in late 2022 had also sparked alarm. X last month added about half a dozen more companies to its case including Shell, Nestlé, Pinterest, and Lego.

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