X Settles Multiyear Legal Fight With World Federation of Advertisers

Elon Musk’s X has settled its multiyear legal battle with the World Federation of Advertisers, according to statements from the two organizations cited by TechCrunch. The dispute centered on X’s effort to hold advertisers legally responsible for pulling spending from the platform over brand safety concerns. The settlement marks a reset in the relationship between X and the WFA.

X sued the WFA in 2024, accusing it of conducting what X called a “systematic illegal boycott” after the platform saw advertising revenue decline following Musk’s $44 billion takeover in 2022. The companies X accused included Mars, CVS Health, Shell, Lego, and others. Advertisers rejected the allegations and argued that brands are free to decide where to spend their advertising dollars.

A federal court dismissed the lawsuit in March after a judge said X had failed to show harm under federal competition laws. X appealed that decision in April. The settlement now closes that legal chapter rather than continuing the appeal fight.

X alleged advertisers reduced spending because of guidelines developed by the WFA’s Global Alliance for Responsible Media, a coalition created to develop standards aimed at preventing ads from appearing alongside harmful online content. Advertisers had been concerned about brand placement after Musk overhauled X’s content moderation policies. In the joint statement, WFA said it discontinued GARM on August 9, 2024, and will not form or restart GARM or a similar initiative.