Elon Musk’s X has officially settled its long-running legal dispute with the World Federation of Advertisers (WFA), bringing an end to a high-profile case over advertising practices on the social media platform.
The lawsuit began in 2024 after X accused the WFA and several major companies of organizing an illegal boycott that hurt the platform’s advertising business. X claimed advertisers, including Mars, CVS Health, Shell, and Lego, worked together to reduce spending following Musk’s $44 billion acquisition of the platform in 2022. The companies denied the allegations, maintaining that advertisers have the right to choose where they place their marketing budgets.
Earlier this year, a federal judge dismissed the lawsuit, ruling that X had not shown sufficient evidence that it suffered harm under U.S. competition laws. Although X appealed the decision in April, both sides have now agreed to settle the dispute.
In a joint statement released on Wednesday, X and the WFA said they are putting the litigation behind them and resetting their relationship. The agreement also formally closes the chapter involving the Global Alliance for Responsible Media (GARM), an initiative created by the WFA to develop industry standards that help prevent advertisements from appearing alongside harmful online content.
X had argued that GARM’s guidelines encouraged advertisers to pull campaigns from the platform. Those concerns grew after Musk introduced significant changes to X’s content moderation policies, leading many brands to worry that their advertisements could appear next to inappropriate or harmful posts.
The WFA said it remains committed to freedom of speech, noting that the principle has been part of its founding constitution since 1953. The organization also confirmed that it shut down GARM on August 9, 2024, and will not revive the initiative or launch a similar program in the future. According to the joint statement, both organizations believe that continued innovation in brand safety will benefit advertisers, online platforms, and consumers alike.
The settlement closes one of the most closely watched legal battles between X and the advertising industry. It also follows previous public tensions between Musk and advertisers, including his widely reported remarks telling companies that paused advertising on the platform to “go f*** yourself.”
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