Elon Musk’s X has settled its dispute with the World Federation of Advertisers, closing the chapter on a heated 2024 lawsuit centered on claims that major brands participated in an advertising boycott of the social media platform.
According to TechCrunch, X and the advertising industry group confirmed the resolution in a joint statement released Wednesday. The agreement ends Musk’s legal push to challenge advertisers that pulled back spending on X amid concerns over brand safety and content moderation on the platform.
X sued the World Federation of Advertisers, commonly known as the WFA, in 2024, alleging that the group helped coordinate what the company described as an unlawful and organized boycott. The case followed a sharp drop in X’s advertising revenue after Musk purchased the social network for $44 billion in 2022. Several high-profile companies were named in the complaint, including Mars, CVS Health, Shell, and Lego. The advertisers rejected the accusations, arguing that businesses are free to decide where their marketing dollars are spent.
The case suffered a major setback in March, when a federal judge dismissed X’s lawsuit. The court found that the company had not adequately shown it was harmed in a way covered by federal antitrust and competition laws. X sought to keep the fight alive by filing an appeal in April.
In their joint statement, X and the WFA said they are moving on from the litigation, framing the settlement as a fresh start in the relationship between the platform and the advertising trade organization.
A central focus of X’s complaint was the role of the WFA’s Global Alliance for Responsible Media, or GARM. The initiative brought together brands and advertising agencies to create guidelines intended to keep ads from appearing next to harmful or objectionable online content.
Critics of GARM have argued that its brand safety efforts amounted to censorship of conservative voices online. – News previously reported that GARM was also a key issue in a major FTC settlement involving advertising giants accused of colluding to suppress conservative media outlets:
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In a complaint filed Wednesday in the U.S. District Court for the Northern District of Texas, the FTC alleged that WPP, Dentsu, and Publicis worked together on policies that reduced advertising on websites carrying content the industry labeled as misinformation. According to the filing, the approach led to fewer ads appearing on outlets such as – News and penalized publishers for carrying material that was “lawful but disfavored.” The FTC said the agencies sought to apply shared “brand safety” standards across digital advertising, and that the companies, alongside major competitors Omnicom and IPG, used trade associations to develop a “Brand Safety Floor” aimed at combating “misinformation.”
“The ad agencies’ brand-safety conspiracy turned competition in the market for ad-buying services on its head,” FTC Chairman Andrew Ferguson said in a written statement. “The antitrust laws guarantee participation in a market free from conduct, such as economic boycotts, that distort the fundamental competitive pressures that promote lower prices, higher quality products and increased innovation.”
According to the joint statement, the World Federation of Advertisers reiterated its dedication to freedom of speech, a principle that has been part of the organization’s founding constitution since 1953. The statement noted that this is a principle shared by both WFA and X. Significantly, the statement revealed that on August 9, 2024, WFA discontinued GARM. The organization committed that it will not form or restart GARM or any similar initiative in the future. Both WFA and X expressed alignment in their view that brands, platforms, and consumers will all benefit from innovation in brand safety.
The settlement marks a significant shift in the relationship between X and the advertising industry. After years of tension and legal battles, both parties appear ready to move forward. The discontinuation of GARM removes a major point of contention, while the joint commitment to brand safety innovation suggests a potential path toward rebuilding trust between the platform and advertisers.
Read more at TechCrunch here.
Lucas Nolan is a reporter for – News covering issues of AI, free speech, and online censorship.
