Elon Musk’s X settles multiyear legal battle with the World Federation of Advertisers

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Elon Musk’s X settles multiyear legal battle with the World Federation of Advertisers

TechCrunch · 4 hours ago

Elon Musk's X has settled its long-running legal battle with the World Federation of Advertisers (WFA), the two organisations announced on Wednesday, bringing to an end a case that saw X attempt to hold advertisers legally responsible for pulling their spending from the platform. The dispute centred on brand safety concerns following Musk's 2022 takeover of the company, and its resolution effectively closes one of the most aggressive fronts in Musk's campaign against advertisers who reduced their spending on the platform.

X sued the WFA in 2024, accusing it of orchestrating a "systematic illegal boycott" after revenue fell sharply post-takeover, naming firms including Mars, CVS Health, Shell and Lego as having reduced spend. The claims centred on guidelines from the WFA's Global Alliance for Responsible Media (GARM), which advertisers said were simply about protecting brands from appearing alongside harmful content, not a coordinated boycott. A federal court dismissed the suit in March, finding X had shown no harm under competition law, and X's April appeal has now been dropped as part of the settlement; the WFA had already disbanded GARM in August 2024 and confirmed it will not revive it or a similar initiative.

  • X and the WFA have settled their multiyear advertising boycott lawsuit.
  • X sued in 2024 over alleged illegal boycotts by brands like Mars and Shell.
  • A court dismissed the case in March; WFA's GARM initiative stays shut down.

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