Musk’s X settles ad boycott lawsuit with global trade group

Elon Musk's X has settled its nearly two-year legal battle with the World Federation of Advertisers, ending a dispute the billionaire once called "war" with a quiet joint statement that reveals little about the terms of the deal.

"Today the World Federation of Advertisers and X Corp. are putting the litigation involving the Global Alliance for Responsible Media (GARM) behind them," the two organizations said Wednesday. "This resets the relationship between the two organizations."techcrunch+1

From 'War' to Settlement

The resolution marks a stark contrast to Musk's combative posture throughout the dispute. After acquiring Twitter for $44 billion in 2022 and overhauling its content moderation policies, Musk watched advertisers flee the platform over brand safety concerns. He responded by telling departing advertisers to "go fuck yourself" before declaring "it is war" and filing an antitrust lawsuit against the WFA in August 2024.arstechnica

X accused the WFA and member organizations — including Mars, CVS Health ↘ 0.75%, Shell ↗ 1.62%, Lego, Unilever ↘ 2.85%, Nestlé, Tyson Foods ↘ 4.44%, and Colgate-Palmolive ↘ 0.33% — of orchestrating an illegal boycott through GARM, the WFA's brand safety initiative. The advertisers maintained they independently decided where to spend their budgets.adweek+1

A federal judge dismissed the case in March, ruling X had failed to demonstrate an antitrust violation. X appealed in April but has now dropped the claims entirely.arstechnica+1

GARM's Dissolution Remains Musk's Biggest Win

Though the lawsuit itself ended without a favorable ruling for X, the pressure it created forced the WFA to shutter GARM just days after the initial complaint was filed in 2024, citing the cost of defending itself. In Wednesday's statement, the WFA confirmed it "will not form or restart GARM or a similar initiative."techcrunch+1

X's 2024 ad revenue was $1.7 billion, down more than 62% from pre-acquisition levels, according to an S-1 filing made by X's parent company SpaceX in May.adweek

The case also had broader consequences for the advertising industry. The FTC under Trump appointee Andrew Ferguson launched a probe into whether advertising groups illegally coordinated to shape investment choices, and in April, agency giants Publicis, WPP ↘ 1.22%, and Dentsu settled with the FTC over allegations they colluded to implement brand safety standards that directed budgets away from conservative media.adweek