X Ends Legal Dispute With World Federation of Advertisers

Elon Musk’s X has settled with the World Federation of Advertisers (WFA), ending a legal dispute that began after the social media platform accused the advertising group of coordinating a boycott against it.

The two organisations announced the agreement on Wednesday, concluding a case that centred on advertiser spending following Musk’s acquisition of Twitter, now known as X, in 2022.

X filed the lawsuit in 2024, alleging that the WFA had orchestrated an illegal boycott that caused advertisers to reduce spending on the platform over concerns about brand safety. The complaint named companies including Mars, CVS Health, Shell and Lego, arguing they had collectively withdrawn advertising.

The advertisers denied those allegations, maintaining that businesses are free to determine where they allocate their marketing budgets.

Earlier this year, a federal judge dismissed the lawsuit, ruling that X had not demonstrated harm under federal competition law. The company appealed that decision in April before the two sides ultimately settled.

Joint statement marks a new relationship

In a joint statement, X and the WFA said they were putting the litigation involving the Global Alliance for Responsible Media (GARM) behind them, describing the agreement as a reset in the relationship between the two organisations.

X had argued that GARM, an initiative established by the WFA to develop standards intended to prevent advertising from appearing next to harmful online content, encouraged brands to reduce spending on the platform.

Those concerns intensified after Musk introduced significant changes to X’s content moderation policies, leading some advertisers to worry that their promotions could appear alongside objectionable material.

As part of the announcement, the WFA reiterated its longstanding commitment to freedom of speech, noting that the principle has been part of the organisation’s constitution since 1953 and is one it says it shares with X.

The WFA also confirmed that it discontinued GARM on Aug. 9, 2024, and said it does not intend to revive the initiative or launch a similar program in the future.

According to the statement, both organisations believe brands, platforms and consumers will benefit from continued innovation in brand safety.

Musk’s relationship with advertisers has been strained

The legal battle was one chapter in Musk’s broader conflict with advertisers since purchasing the platform for $44 billion.

After several major brands paused their advertising campaigns following the takeover, Musk publicly criticised those companies, telling advertisers who had stopped spending on the platform to “go f*** yourself.”

The settlement closes one of the most closely watched disputes over advertiser influence, content moderation and brand safety in the social media industry.